ESIC Records Appraisal

• Best
• Alternate
• Fall-back
• Principals
• Points

Early Stage Test Typically applies immediately after the shares were issued
Records that the company was not listed on an official stock exchange in Australia or a foreign country.	Specific confirmation from the company
Record of the issue date of the shares	Information from the company (e.g. date on the share certificate).
The company’s and its 100% subsidiaries financial records previous financial year reports (show $1 million or less expenses and $200,000 or less in income)	Letter from the company tax agent, accountant or director confirming the applicable prior year(s) consolidated income and expenditure.
Independent records for ASIC Incorporation or registration on the ABR	Information from the company (i.e. date of incorporation or registration).
Proof that company was undertaking innovation activities solely on its own, or that the ownership structure did not defeat the purpose of ESIC concessions. The incentives may not apply to sophisticated structured ventures	Letter from tax agent, ASIC agent, company secretary, company director or lawyer.

Points Based Test You have the following proof immediately after the shares were issued
Accelerating Commercialisation Grant under the Accelerating Commercialisation element of the Commonwealth’s Entrepreneur’s programme	75 Points	Inclusion in the portfolio or Alumni list on the government website.
At least 50 per cent of the company’s total expenses for the previous income year constitute expenses which are eligible for the tax offset for R&D activities provided under Division 355	75 Points	Letter from the company tax agent
The company is undertaking or has completed an eligible accelerator programme	50 Points	Detailed advice letter from the program and independent review of the applicable program (at the time), to assess if it was an effective proxy for the principals based ESIC test, meting all the other requirements of s360-45 (1)
At least 15 and less than 50 per cent of the company’s total expenses for the previous income year constitute expenses which are eligible for the tax offset for R&D activities provided under Division 355	50 Points	Letter from the company tax agent
The company has issued at least $50,000 of shares to a third party	50 Points	Non-associate and ‘not for tax advantage’ assertions by the company. Investor meeting records and company/investor correspondence.
Within the last five years, the company has one or more enforceable rights on an innovation through a standard patent or plant breeder’s right that has been granted in Australia or an equivalent intellectual property right granted in another country	50 Points	Company IP reports
Within the last five years, the company has one or more enforceable rights on an innovation through an innovation patent or design right or an equivalent intellectual property right granted in another country	25 Points	Company IP reports
The company has a written agreement to co-develop and commercialise an innovation with a research organization or a university	2500 Points	Published public announcement records by the University or Research Organisation