R&D Eligibility and Compliance Check
Research & Development projects that are eligible for government schemes i.e. the R&D Tax Incentive or other government sources of funding, must comply with often complex legislation and good business practice in case of an audit.
Compliance errors are common in R&D Tax Incentive claims, which can lead to businesses being forced to pay serious financial penalties if found to be non-compliant.
If AusIndustry finds your R&D application did not provide enough detail on your registered R&D activities, you may be required to pay back the rebate you have received to date through the scheme plus a fine.
Typical compliance errors when conducting R&D include:
- Not describing an (eligible) ‘experiment’
- Providing an insufficient hypothesis
- Supplying a claim with inappropriate technical detail (too much, too little or too confusing)
The above typical errors can render a claim at a potential high risk of noncompliance with R&D law, resulting in a high risk for the claim if an audit takes place.
As part of Avant Research’s technical project management, Avant Research offers compliance advisory management services.
Avant Research will conduct regular reviews with your team to assist you in managing your project’s compliance requirements.
This service includes:
- Initial Technical investigation report
- Project framework provision
- Regular auditing and review of activities and expenditure
- Regular feedback and reporting throughout the research project/s timelines including areas for improvement
- Regular review with your internal technical team to ensure project delivery is being met
- Provision of reports on R&D project progress to management
- End of Year Claim Preparation via affiliate firm, Avant Group incorporating :
- Annual review to assess activity in line with management and sign-off of following years’ budgets
- Full review upon submission
- Application to AusIndustry for R&D Activity Approval compilation of annual data kit for provision to your accounting firm for lodgement in line with your tax return submission