A claw back adjustment will arise when the following takes place when:

1.    You are eligible for the R & D Tax incentive; and

2.    You receive a government recoupment (a grant or reimbursement) that relates to expenditure that is eligible for the tax incentive.

Note that the Clawback will not decrease the grant or offset you receive.  It will increase the amount of income tax that your company will be liable to pay on the recoupment.  The income tax increase is called a ‘clawback adjustment’  Refer to Section 355-G of Income Tax Assessment Act 1997 (ITAA 1997)

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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