Scott Olding, Jeremy Capes, and Michael Wall illustrate the enormous value of documentation and evidence in accessing the R&D Tax Incentive.
If KPMG has assisted you or an organisation you work with to claim the Research & Development (R&D) Tax Incentive, you will be familiar with our insistence on the availability of evidence to substantiate the eligibility of the R&D as well as the timing of the R&D activities being carried out.
The ongoing compliance monitoring of the R&D Tax Incentive regime by the Australian Taxation Office (ATO) and AusIndustry includes a focus on reviewing documentation and other evidence. While this concept is not new to the R&D claimant community, increasing sophistication by the regulators (including the ATO, AusIndustry and other government departments) means taxpayers need to consider what they are communicating to various parts of Government.
By way of example, a multi-national group of companies that carries out eligible R&D in Australia should also consider its transfer pricing position and documentation. This is to ensure that there are no inconsistencies in what it is communicating internally and to the ATO. In addition, if that multi-national group is also moving employees in and out of Australia, the Visa Application process and descriptions provided should also be consistent with documents generated internally and those provided to Government.
The KPMG R&D, Transfer Pricing and Immigration Services teams work together across these issues for multinationals. Creating awareness across organisations and demonstrating our capability and experience to support their commercial objectives in Australia is a key differentiator for KPMG – you need to have the bigger picture in mind!
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