The AAT has affirmed the decision of the Minister for Infrastructure and Regional Development not to exercise the discretion under the Industry Research and Development Act 1986 to grant the taxpayer an extension of time to register for R&D tax concessions for an engineering “conceptual process study” in relation to its silver mining activities.
The applicant argued that “exceptional circumstances” existed that warranted the exercise of the discretion in terms of the death of a director of the applicant and the failure by its original tax agent to provide any advice regarding R&D at any of the relevant times.
In affirming the decision, the AAT found that the death of the director was not an “exceptional circumstance” essentially because it had not been unexpected.
However, while accepting that the tax agent’s failure to provide relevant advice about the right to lodge an “out of time” application for the concessions was capable of being an “exceptional circumstance”, nevertheless the AAT found that the further delay in lodging applications was primarily the fault of the applicant.
(Re Silver Mines Limited and Minister for Infrastructure and Regional Development [2016] AATA 707, AAT, Ref Nos 2014/5671, 2014/5672, Deutsch DP, 13 September 2016.)
[LTN 184, 22/9/16]
Extract from AAT reasons
CATCHWORDS
TAXATION – Industry Research and Development Act 1986 – research and development tax concessions – registration for concessions – applicant lodged applications for 2010/2011 and 2011/2012 income years out of time – whether exceptional circumstances exist – death of a director not an exceptional circumstance – tax agent failing to provide relevant advice held to be an exceptional circumstance – further delay caused in lodging applications fault of the applicant – decisions affirmed
LEGISLATION
Industry Research and Development Act 1986 (Cth) s 27A, 27D
Industry Research and Development Act 1986 (Cth) s 39J, 39JF, as amended by Tax Laws Amendment (Research and Development) Act 2011 (Cth) sch 4, cl 1(1)