During an Audit, AusIndustry and the ATO will ask you to provide evidence of your R&D activities conducted within one to four years. Therefore, having well-managed record-keeping is necessary. The recent changes made by the Government to the application R&D Tax Claim form means that the evidence you have maintained in the past for a claim may not be sufficient to prove that your R&D is eligible or to defend your claim from now on.
The changes have aligned the evidence requirements to more closely match the R&D Tax legislation and require far more stringent documentation than in the past. This includes clearer and more detailed documented evidence around your hypothesis, the new knowledge you need to discover and the experiments you will conduct to verify each hypothesis.
You must also be able to provide follow up evidence of the experiments, i.e. the outcomes that are assessed in terms of each hypothesis. You will also need to directly connect the expenses related to the activity, and these comprise your rebate application.
We provide a self-audit option for you to know how well you are keeping records and how much you are missing out on. by doing a Self Audit questionnaire, after the completion, you will receive a personal report written by our consultants. Conduct now!
We also have Periodic Auditing services to help you audit a project in detail and spot check how well the R&D Manual is being followed. So we can help you maximise your adoption of the Frameworks and the R&D Manual processes, make sure that you will be confident during an audit.
If you have been notified of an audit you may like to enquire about our R&D Records remediation service. We will work with you to find the records that AusIndustry and the ATO may want to see and also those they may have asked for in the Request for Information, book an initial 10-minute consultation to discuss your specific situation.