the section on Approval: significant performer regime (year two) (page 99) for more information. A decision made by the Commissioner under the proposed new sections cannot be challenged, except through judicial review. Background General approval is designed to: provide certainty; act as an integrity measure; and shift the timing, and burden, of compliance and administrative costs so that it is easier on both government and people making R&D tax credit claims. Certainty General approval is intended to provide people making R&D tax credit claims with greater certainty, because they will be able to obtain approval of their core activities while they are undertaking them. Operational constraints mean that general approval will only be available from the 2020–21 income year. Integrity measure Requiring people to obtain general approval acts as an integrity measure, because it ensures they apply for approval of their core activities when (or slightly before or after) they are actually performing their R&D activities. As a result, general approval: increases the likelihood that R&D tax credits are only paid out to those persons who were aware that they were performing R&D activities in the relevant income year; and it easier to identify that there is scientific or technological uncertainty than would be the case if the examination occurred one or two years after the R&D activity has been completed. Other benefits In jurisdictions, government approval of core activities and the certainty this provides has enabled people with approval to obtain R&D funding more easily. In these jurisdictions, lenders take government approval into account when providing funding for R&D activities. Detailed analysis General approval not available in year one General approval will only available from the 2020–21 income year onwards (see clause 38.
the section on Approval: significant performer regime (year two) (page 99) for more information. A decision made by the Commissioner under the proposed new sections cannot be challenged, except through judicial review. Background General approval is designed to: provide certainty; act as an integrity measure; and shift the timing, and burden, of compliance and administrative costs so that it is easier on both government and people making R&D tax credit claims. Certainty General approval is intended to provide people making R&D tax credit claims with greater certainty, because they will be able to obtain approval of their core activities while they are undertaking them. Operational constraints mean that general approval will only be available from the 2020–21 income year. Integrity measure Requiring people to obtain general approval acts as an integrity measure, because it ensures they apply for approval of their core activities when (or slightly before or after) they are actually performing their R&D activities. As a result, general approval: increases the likelihood that R&D tax credits are only paid out to those persons who were aware that they were performing R&D activities in the relevant income year; and it easier to identify that there is scientific or technological uncertainty than would be the case if the examination occurred one or two years after the R&D activity has been completed. Other benefits In jurisdictions, government approval of core activities and the certainty this provides has enabled people with approval to obtain R&D funding more easily. In these jurisdictions, lenders take government approval into account when providing funding for R&D activities. Detailed analysis General approval not available in year one General approval will only available from the 2020–21 income year onwards (see clause 38.
2018-commentary-rdtc-bill.docx