ASX ANNOUNCEMENT25 February 2020AusIndustry sets aside negative...

ASX ANNOUNCEMENT
25 February 2020
AusIndustry sets aside negative R&D finding
Highlights
• AusIndustry review finds most activities in Northern Minerals’ R&D tax offset claims for FY17
and FY18 were in fact eligible;
• Australian Taxation Office to reassess income tax returns for FY17 and FY18.
Australian heavy rare earths producer, Northern Minerals Limited (ASX: NTU) (the Company), wishes
to provide an update to investors about the status of its research and development (R&D) tax offset
claims that were submitted to the Australian Taxation Office (ATO) as part of the Company’s income
tax returns for the 2016/17 and 2017/18 income years (each an R&D Claim), which have each been
reviewed by the ATO and the Department of Industry Innovation and Science (AusIndustry).
After market close on 24 February 2020, the Company received formal notification from AusIndustry
that it has reversed its initial finding (refer announcement dated 17 May 2019) in relation to the
Company’s R&D Claims. This means that most of the Company’s registered activities are in fact
eligible for the R&D incentive. The company has agreed to exclude from the claim some minor
supporting activities that were part of the previous claims.
AusIndustry will provide a copy of the notice to the ATO which is bound by AusIndustry’s findings and
is expected to reconsider certain aspects of their initial finding before confirming the quantum of the
final refundable R&D tax offset.
The Company will seek to immediately stop payments to the ATO of amounts owing as a result of the
initial finding (refer announcement dated 5 June 2019) and work closely with the ATO to confirm the
final refundable R&D tax offset.
Northern Minerals Managing Director and CEO, George Bauk, commented “We are pleased but not
surprised by the AusIndustry review findings.
“The Company and its advisors worked diligently and submitted claims in respect to the R&D tax
offset in line with the assessment criteria provided.
“We committed to initially developing Browns Range as a pilot plant operation as there were no
analogues or peer projects to guide us.
“As such, we were always confident that our claims met both the spirit and technical guidelines for
assessment.
“We look forward to working with the ATO to finalise this process.”
ENDS
For and on behalf of Northern Minerals Limited
Mark Tory
Company Secretary