If expenditure to an associate of an entity that is eligible for the R & D Tax Incentive is incurred but not paid can it be used later as a notional deduction?

7 February 2014

Admin User

Yes. Section 355 - 480 of Income Tax Assessment Act 1997 (ITAA 1997) states that if expenditure is incurred to an associate but not paid it can be effectively carried forward to future income tax years.

The expenditure can to be used as a notional deduction in the calculation of the R and D Tax Offset when it is actually paid to the associate.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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If expenditure to an associate of an entity that is eligible for the R & D Tax Incentive is incurred but not paid can it be used later as a notional deduction?

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