A large R&D claim can involve several projects, multiple entities and expenditure that does not fit neatly into a standard worksheet. Complexity does not make a claim ineligible. It does make it important to identify the assumptions carrying the claim and test them carefully. A focused legal review can help a business and its existing advisers decide where further work is needed before committing to a position.
Look beyond the size of the number
Consider why the claim is complex. Are activity boundaries difficult to explain? Is the work conducted under a contract with another group entity? Do several years share the same technical narrative? Is expenditure allocated across commercial production and experiments? These questions can identify review priorities more effectively than applying a single monetary threshold to every business.
The R&D Tax Incentive is a self-assessment program. Registration and receipt of an offset should not be treated as a substitute for establishing that the relevant requirements are met. Departmental and ATO guidance describes review activity before or after a claim has been processed. [R1] [R3] A specialist review should therefore examine the basis of the position, not simply confirm that forms have been lodged.
Give the review a defined scope
Start with a list of the questions that need an answer. The review might focus on activity eligibility, evidence, expenditure treatment or arrangements between entities. Agree which documents and income years are included. A clear scope helps distinguish a targeted assessment from a comprehensive reworking of every aspect of the claim and allows the team to budget sensibly.
For a hypothetical group with several development projects, the greatest uncertainty may sit in one contract or one high-cost activity. Reviewing those points first can be more useful than spending equal time on every line item. The priority should reflect the facts, the potential consequence and the strength of the existing analysis.
Include the people who know the work
The technical team should explain what was attempted and what the records show. Finance should explain the calculation and reconciliation. Existing accountants and R&D advisers should explain the approach taken. A legal review works best when those perspectives can be tested together rather than delivered as disconnected documents with no opportunity to resolve inconsistencies.
Ask for conclusions that distinguish supported positions, unresolved questions and recommended actions. Where further evidence is needed, identify what it is and who may hold it. Where the facts do not support an assumption, address that finding directly. The purpose of review is to improve the quality of the decision, not merely add another report to the file.
Allow time to act
Schedule the review while there is time to obtain records, clarify facts and consider advice before relevant deadlines. If a claim has already been lodged, explain that at the outset so the review can address the appropriate next steps. Timing can affect which practical options remain available to the business.
Ardian Law works alongside accountants and R&D advisers on complex claims and contested positions. Call 02 8111 7700 with the income year, principal concerns and current stage of the claim to discuss an appropriately focused review.