Governing bodies such as AusIndustry and the Australian Taxation Office (ATO) conduct periodic audits of companies that make Research and Development (R&D) claims, usually on a three to five-year cycle. These audits aim to ensure that the claimed R&D activities and associated expenditure meet the eligibility criteria and comply with the regulations set forth by the government.
To safeguard your R&D claim and provide peace of mind, it is essential to have the appropriate documentation in place from the outset. Adequate documentation serves as evidence of the R&D activities undertaken, the associated expenditure, and how they align with the R&D tax incentive requirements. By maintaining comprehensive and well-organized records, you can confidently support your claim during audits and demonstrate the legitimacy of your R&D activities.
Having the correct documentation in place not only facilitates a smooth and successful R&D claim process but also enables you to navigate any potential audits with confidence, ensuring compliance with the regulations while maximizing the benefits of the R&D tax incentives.