As like other nations, Australia gives tax relief to companies taking part in research and development activities. However companies need to hold satisfactory documentation to show that their activities fall inside the meaning of these activities for tax purposes. A decision of the Administrative Appeals Tribunal (AAT), speaking to a movement in the AAT’s methodology to mining claims, has more extensive implications for all companies that conduct research and development activities in a production environment.
Contemporaneous documentation demonstrating the “experimental” nature of the R&D activities remains the key. Taxpayers who accept R&D activities do not produce or hold strong evidence of those activities may see any R&D claim disallowed.
