Client Results
The Bottom Line
When a publicly listed company approached us to review the R&D tax concession claims of one of their divisions, we found that they were just identifying and claiming the obvious R&D – the ‘low hanging fruit’ – and were leaving millions of dollars behind. And it’s not that the tax manager didn’t know that the claims could have been bigger – it’s that they didn’t know how to approach the issue to galvanise their staff into action.
Engaging operations
After some initial work with the operation, the problem was stated clearly by our consultants: changing organisational priorities and regular staff changes meant that there was little institutional knowledge about the R&D tax concession, and the benefits it could bring the operation.
The perception was that year after year valuable resources were diverted from current projects to attend to the housekeeping of the past for a benefit no one saw.
Crossing the tax-operations divide
Our approach was to demonstrate that the preparation of claims could be almost painless. From adapting existing planning practices to minimising the disruption to operations staff by preparing technical documentation after interviews, every interaction was aimed at demonstrating that the process of compliance could be productive and rewarding.
This process of education led to a renewed enthusiasm for the R&D tax concession and saw claims increase dramatically. The positive results we were able to achieve led head office to create a way for the equivalent tax benefit to flow to the operations bottom line, cementing their enthusiastic response.
Without our involvement, both in dealing with staff and in the preparation of claims, the taxpayer would have missed out on their entitlement. And without the support of operations, nothing would have changed.
Winning the support of operations is a key to our success, and yours.
About Michael Johnson Associates
Founded in 1983, Michael Johnson Associates (MJA) is Australia's leading specialist R&D tax concession firm. We work with organisations of all sizes to help them understand the benefits of a compliance approach to R&D tax concessions and grants.
We know the complex legislation, amendments and guidelines related to government programs inside out - we deal with them every day. We also write the commentary on the R&D tax incentive for the CCH Federal Tax Reporter.
Please Contact Us to see how we can be of help to you.
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