Early stage innovation companies - A year of learning
Source: Taxation In Australia Journal Article
Published Date: 1 Mar 2018
On 1 July 2016, the government introduced tax incentives for investors who support early stage innovation companies (ESICs). The benefits were aimed to incentivise investors to direct funds towards ESICs through the provision of tax concessions, provided the ESIC satisfies both the early stage limb and the innovation limb " the latter of which can be satisfied by passing the principles-based test or the 100-points test. When the new ESIC law was passed, the authors published an article titled 'Early stage innovation companies " a deeper dive, which examined the newly enacted provisions. A year and a half on, the authors reflect on the effectiveness of the ESIC tax concessions, taking into account the release of six ATO guidelines in relation to ESIC. This article outlines how effectively the ATO has addressed the authors' former concerns about the ambiguity of the law and what has been learnt in applying these provisions over the last 12 months.
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Details
- Published By: Mark Trewhella ATI, Jessica Brass
- Published On:1 Mar 2018
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