Record keeping required for the R&D Tax Incentive

Record keeping required for the R&D Tax Incentive

Activity based record keeping:

Activity based records show that activities were actually carried out, and show how they are eligible core or supporting R&D activities.

The type of records that might be kept for activity based records include:

• Notes from meetings with project and technical staff.
• Business plans and approvals.
• Results of background research and scoping.
• Technical project documents, including the results of testing on the product, idea or service.
• File notations and updated records to track the progress of an R&D activity

Expenditure based record keeping:

Expenditure based records justify expenditure claims for eligible R&D activities.

The type of records that might be kept for expenditure based records include:

• Timesheets to verify the amount of time spent on R&D activities.
• General ledger entries and invoices to verify the amount incurred on R&D activities and that include sufficient detail to link them to the R&D activities.
• Spreadsheet or template that allows for eligible R&D costs to be consolidated into a format that allows for direct input into the ATO R&D Tax Incentive Schedule.
• Financial documents including records of expenditure that include sufficient detail to link them to the R&D activities.

TaxTrex:

TaxTrex reduces the risk of an AusIndustry audit by providing tools to manage an R&D claim service in-house from initial assessment to the claim submission. Relevant information necessary for the R&D claim will be:

• extracted,
• time-stamped; and
• securely stored.

The information gathered through the surveys will assist in substantiating the scientific process and purpose of conducted activities.

The reports generated from the surveys will be useful in defending a claim in the event of a review or audit.

For more information please Contact Us

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