I would not call myself an expert on the R&D tax rebate process, but I have been through it enough times that I know the rules. The limit of your total claimable spend that can be overseas is 50% with any spend over this excluded. What this means for a company like IMU where most of their R&D spend is outside of Australia is that a maximum of 2x their Australian R&D spend can be claimed.
On top of this the ATO has recently tightened the criteria for claiming non-Australian R&D spending considerably. You are required to demonstrate in great detail with written proof why the R&D could not be done in Australia. It is not easy to claim overseas R&D.
I don’t have enough information on where IMU has spent its R&D dollars to estimate their R&D rebate, but it would be a good question for the IMU shareholders to ask management what percentage of their R&D spend was in Australia.
IMU Price at posting:
2.1¢ Sentiment: None Disclosure: Not Held
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