This interpretation statement provides guidance on who is eligible for research and development (R&D) loss tax credits (including the type of company that is eligible, the expenses that are relevant for particular calculations, and the qualifying types of R&D activity). The statement also considers a company’s ongoing obligations once it is eligible to receive the R&D loss tax credit.

CA ANZ supports publication of the draft statement. It will be welcomed by taxpayers and advisers who operate in the R&D area. The statement is well-written and the use of examples to explain the various concepts are very helpful.

CA ANZ suggests some aspects of the item be reviewed and clarified with additional references.