Under the R&D tax incentive, an R&D tax offset for expenditure incurred to an associate can only be claimed when that amount is paid. For taxpayers who incurred an R&D amount to an associate but did not pay it in 2012, the ATO says they can either claim a deduction under the normal income tax provisions, or carry the amount forward so it can be notionally deducted in a later income year. The ATO says if taxpayers choose either of the alternatives, they must not claim the amount as a non-R&D deduction in their tax return. The ATO suggests tax agents check that affected clients have claimed the R&D incentive correctly.
[LTN 39, 27/2/13]