Legal substance and R&D entity relationships
Published Date: 17 Jun 2024
The ATO’s release of new R&D tax incentive taxpayer alerts in December 2023 (TA 2023/4 and TA 2023/5) signifies upcoming scrutiny on R&D claims. These alerts focus on ensuring that entities claiming R&D tax offsets are legally entitled in accordance with the legislation. Applying TA 2023/4 and TA 2023/5, the ATO may more closely examine the legal and commercial aspects surrounding control, financial risk, and ownership of R&D results. This should compel R&D entities and advisers to move beyond superficial assessments and delve into the rights and obligations of the entity conducting the R&D. It necessitates a thorough evaluation of legal and commercial relationships within multi-entity and multi-jurisdiction groups to ensure compliance and legitimacy in claiming R&D tax offsets.
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- Published By: Damian Smyth
- Published On:17 Jun 2024
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