As part of its tax transparency obligations, the Australian Taxation Office (“ATO”) is required by law to publish certain information on Research & Development (“R&D”) tax incentive claims reported by taxpayers.
The R&D tax incentive aims to boost competitiveness and improve productivity across the Australian economy. Accordingly, the intent of publishing this information is to improve public accountability for R&D claimants and to encourage voluntary compliance.
Who do the changes apply to?
As part of the changes made to the R&D tax incentive from 1 July 2021, the ATO is required to publish information on an annual basis about R&D entities and the R&D expenditure they have claimed.
The first publication will be in respect of R&D entities whose income year began on or after 1 July 2021 and lodged a 2022 company tax return with a R&D tax offset claim. The ATO is anticipating that this information will be publicly released during September 2024.
What information will be published?
The ATO will publish the following information that is disclosed within the R&D Tax Incentive Schedule lodged as part of a company tax return:
- The name of the R&D entity claiming the R&D tax incentive;
- The entity’s Australian Business Number or Australia Company Number; and
- The entity’s total expenditure on R&D.
The above information will be published on data.gov.au and will be captured within the ATO’s R&D Tax Transparency Report that will be published on its website.
Due to stringent confidentiality requirements imposed on the ATO, they are precluded from disclosing information (i.e. the nature of the R&D activities) beyond what has been identified above.
What are the next steps?
It is critical that clients consider their position and how the rules apply. Clients should contact their Pitcher Partners representative if they believe there is an error that requires amendment or if they would like a Health Check performed on their R&D tax incentive claims. This review must be completed prior to 31 March 2024 to ensure the correct disclosure is reported under the transparency measures.
