June 1, 2018
Budget papers released on 8 May reveal that R&D Tax Incentive claimants including SMEs and the start-up sector may be faced with additional compliance burdens. Under the new measures, which come into effect on 1 July, there will be additional funding for enforcement activity allocated to the Tax Office and AusIndustry. Jack Qi, Director of Tax Services and R&D specialist at William Buck, says that while at first glance SMEs and start-ups may have been spared the brunt of the tightening of the R&D Tax Incentive, compliance changes could have the biggest impact. “Given that such activity has already ramped up in recent years, any further focus will mean it’s more important than ever to prepare robust R&D claims and quality, contemporaneous internal documentation that will withstand scrutiny,” says Qi. “From a cash flow perspective, we anticipate potential delays in companies receiving their R&D refunds until any review is finalised.” Qi warns the Government against making any more changes to the R&D Tax…