Question

Bil Laboratories Pty Ltd incurred an accounting net loss of $50,000 for the year ended 30 June 201X. This comprised income $500,000, eligible R&D expenses of $100,000 and other expenses $450,000.

(Assume company tax rate is 30% and R&D refundable tax offset is 43.5%)

Required:

Calculate taxable income and tax payable / (refundable).

Answer 1

Particulars	Amount($)
Accounting Net Loss	(50,000)
Add:R&D expenditure subject to Tax offset	100,000
Taxable Income(a)	50,000
Tax Payable/Refundable
Tax on (a)@ 30%	15,000
Less:R&D offset(100000 x43.5%)	43,500
Refund Due	28,500

Note:- For getting R&D refund company's aggregate turnover should be below $20 million.

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