Nightmare For Tech Start-ups With R&D Audit & Encryption Bill
Law Squared are here to help
Our litigation team can assist you with any matters involving bad tax advice relating to the Research and Development (R&D) tax offset scheme.
The Australian Government has recently announced that it will be actively pursuing cases of fraudulent R&D tax offset claims, after investigations reveal the pervasiveness of misleading advice and false business activity reporting being made to claim the offset by a number of Australian businesses.
The Australian Taxation Office (ATO) scrutinises tax offset claims more closely than other tax incentives because business’ costs are being claimed against taxpayers’ money. Be wary of the serious consequences for misreporting or claiming the offset in circumstances where your business activity does not (or did not) meet the criteria set. The consequences can range from demands by the ATO to repay the claims refunded to you, or they may even seek to impose a criminal liability in some circumstances where the offset is used to avoid tax obligations.
Several R&D tax consulting agencies emerged upon the establishment and growth of the tax offset scheme. These advisors and consultants offer advisory and lodging services in exchange for a fee or a commission. While most advisors do the right thing and have the requisite knowledge and expertise to provide correct advice, some have taken advantage of the opportunity and provided incorrect, misleading and/or poor advice in the filing of an R&D claim.
As a result, businesses, particularly startups across Australia are being audited extensively due to the prevalence of dubious claims, many of which were made by R&D tax consultants who negligently provided advice.
If you are subject to an R&D tax audit or need advice in this area, then simply fill out the form below and we’ll be in touch shortly.