Budget provides tax relief to certain R&D expenditure
In many respects just a grant by any other name
The Budget includes an announcement that “small, innovative businesses” will be able to cash up tax losses on R&D up to a certain limit, says Deloitte CEO Thomas Pippos.
The reality is cashing up of losses is just another form of government grant.
“Either way, it is good news for start-ups,” says Mr Pippos.
Interestingly, this is not a far cry from the 15% tax credit for research and development expenditure that the National Government previously repealed – albeit on a significantly smaller scale, which is likely to be the real difference.
“A discussion document will be released in June to consult on the proposals, and as always, the devil will be in the detail,” concludes Mr Pippos