It has been revealed that the Federal Government’s self-assessed Research and Development (R&D) Tax Incentive scheme, which provides tax rebates of up to 43.5% for companies that invest in R&D, has been exploited by fraudsters, former bankrupts and other dubious individuals. From The Canberra Times:
The Research and Development (R&D) Tax Incentive program is the government’s largest industry innovation package, providing about $3 billion in tax offsets to businesses each year. But serious concerns have been raised about compliance and enforcement.
Fairfax Media can reveal the scheme has been abused by notorious property spruiker Jamie McIntyre, former bankrupt Ramon Russell and accountant Arjuna Samarakoon, who has pleaded guilty to three fraud charges following an investigation by the Australian Federal Police…
Under the scheme, rebates of up to 43.5 per cent of total R&D expenditure are provided to businesses that “conduct experimental activities, in a scientific way, for the purpose of generating new knowledge”…
A spokeswoman for the Department of Industry Innovation and Science confirmed “the two agencies have identified some high-risk areas in the R&D Tax Incentive program”.
Fairfax Media can reveal several discredited business figures received massive rebates from the ATO between 2012 and 2015, which were siphoned from the companies for personal use…
“If claims are found to be ineligible upon review, the Commissioner of Taxation will actively seek repayment of R&D tax offsets which have been claimed inappropriately,” the ATO spokesman said.
Now watch as this otherwise worthwhile program is unwound by the Coalition on account of these few shonks.
