It's no surprise that we recommend you seek expert accounting support with your early stage venture, particularly in regards to ESIC status, for good measure, literally.
Take the following examples, firstly one that's measures up and another that left me wanting.
The first, a company with over $5 million already invested in a tech start-up, who had taken the logical step in capitalising its IP in development of the system and deferring the R&D claim in the tax reconciliation to the year of receipt, all prior to a voluntary audit. The latter, a much more modest start-up who expensed all its development cost (to carryforward losses) and booked the R&D claim on an accruals basis.
On face value, you would expect the earlier company with significant cashflows to struggle on its ATO ruling application, with the latter, smaller business being more likely to qualify.
Well I can confirm the well capitalised company was considered an Early Stage Innovation Company (even with $5 million invested).
All accounted for,
It's no surprise that we recommend you seek expert accounting support with your early stage venture, particularly in regards to ESIC status, for good measure, literally.
Published By: Tom
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- Question Time: Am i eligible to claim for the ESIC offset if my investment was used to meet the 100
- What about IPO? or PL to Limited Conversion?
- Early Stage Test - Are you a listed company?
- Genuine IP
- Join the Crowd
- Getting ready for an ATO ruling
- Feast or famine? Does ESIC status = Investment?
- ESIC on Incorporation?
- When keeping it simple is no longer an option
- Ruling you in or out
- R&D warning
- Get your status sorted
- Ready to go Oslo?
- Are rulings in or out?
- Getting up to speed
- Don't skip the commercials
- Accountriment and Other considerations
- Guess again in 2017
- Plan C - the ATO Private Ruling
- What's the Point
- Threenagers and other problems
- All about status
- What's the price of good advice?
- Its about timing
- Spotlight on some of Australia's first ESIC's
- Unknown Unknowns?
- An optimist in principal?
- Sales ends 30 June
- Is timing everything?
- Excluded Trades
- 50,001 unhappy returns
- Pro's and Con's
- Watching the Clock?
- Secret ingredients and the special sauce
- Second Chance Draw?
- Listing your startup
- Welcome to ESIC Directory