In December 2019, the government re-introduced a bill to reform the R&D Tax Incentive. The media has reported this week that if the government is successful in passing proposed changes to the R&D Tax Incentive, they would seek that the law be enacted more than 12 months retrospectively: applying 1 July 2019 for the FY20 period.<\/p>\n\n\n\n
The revelations arise from statements by ATO and ISA officials to the Senate Economics Legislation Committee during the hearings into the review of the proposed R&D Tax Incentive Reforms.<\/p>\n\n\n\n
The bill has been uniformly condemned by Industry Groups and R&D Tax Professionals.<\/p>\n\n\n\n
It was however thought that if the bill were to be passed as law, the changes would be more likely to apply for the FY21 period (rather than FY20 as proposed).<\/p>\n\n\n\n
Given the widespread financial hardship business is currently facing, many companies have spent recent weeks compiling their FY20 R&D Claims to best ensure that they are able to lodge shortly after the opening of registrations on 1 July 2020. The prospect of a retrospective passing of the proposed R&D Tax Reforms for FY20 is alarming, and exposes companies to undue uncertainty and administrative burden in the event that company tax return amendments for previously assessed FY20 claims are required.<\/p>\n","protected":false},"excerpt":{"rendered":"