This months topics:

• R & D Tax Offset Abuse
• Deductions and Refinancing Home Loans
• Uncommercial Offshore Superannuation Trusts
• Superannuation Funds and Illegal Early Release
• Excess Contributions Tax: Commissioners Discretion
• Payment from Transitions-to-Retirement Pensions
• No Deduction for Misappropriated Money
• FBTAudit and Compliance Activities
• GST: Decreasing Adjustment Note Threshold Increased
• Goods Taken for Private Use

R&D Tax Offset Abuse

The Tax Office has issued a Taxpayer Alert warning taxpayers to be cautious of investment schemes that abuse the research and development (R&D) tax offset.

The Tax Office says the schemes involve a company structuring contracts with a registered research agency (RRA) to take advantage of the prepayment concessions in the tax laws.

The Tax Office is concerned the schemes may give rise to various taxation issues, including whether:

• the prepayments rules will apply;

• the expenditure has been incurred; and

• the company and the RRA are dealing with each other at arm’s length.

If you have a query, please do not hesitate to contact us.