Anthony Restaino, an accomplished Gold Coast accountant, uses the following case study to explain the research and development tax incentive. A passionate businessman Jason owns a medium-sized business and wants to take advantage of the R&D tax incentive. An R&D consultant approaches him and gives him a good news that he can maximize his R&D incentive. As told by the consultant, the claim does not necessarily have to be eligible with the R&D activities. Also, Jason only needs to register his R&D activities with AusIndustry, and his claim would be approved upon approval.
The consultant also tells Jason that the information he provides to AusIndustry does not has to be in sync with his schedules he has to file at ATO. He is of the opinion that these two offices are separate organizations which never cross check information.
Nonetheless Jason has his concerns because all this cannot be so true. He decides to meet Anthony Restaino who is a renowned tax agent in Gold Coast and also registered. Jason’s tax agent Anthony Restaino consults the website of AusIndustry along with ATO in order to know the actual facts regarding R&D tax incentive. The findings are very different from what the R&D consultant told Jason.
The findings are:
- ATO and AusIndustry work in joint collaboration and constantly share information. Not only does this include details related to the registered activities, but also include the amount spent with respect to each activity.
- Claims are reviewed if there are any significant discrepancies.
- Only actual R&D expenses must be claimed as such.
- Accurate and consistent supply of information is a must, which must be supported by evidence.
Anthony Restaino tells Jason that unethical and wrong actions can make him end in trouble, and can also make the tax authorities review his company fully. Moreover, Jason might also have to return any funding while incurring penalties. This makes Jason reject the consultant’s offer and sticks with his tax agent Anthony Restaino from Trak Accountants to guide him further.
