Our client is a 100% family-owned contract manufacturer, making products for the largest shops in Australia as well as other brands. They faced a significant challenge concerning the R&DTI. Their CFO believed that claiming this tax incentive would be too difficult and not worth the effort, primarily due to the company’s large size. However, BridgePoint Group Innovation Advisory’s process works to alleviate the burden and provide a comprehensive solution.
Recognising the concerns raised by the client, our team took charge of the entire process, offering end-to-end assistance. We analysed and prepared the necessary documentation, relieving the client of that burden. In doing so, we were able to address the initial obstacle that had prevented the client from claiming the R&DTI to which they were entitled.
Additionally, we undertook preliminary calculations to illustrate the potential benefits of claiming the R&DTI. These calculations highlighted the potential for a significant reduction in the client’s tax bill. This analysis effectively addressed the second concern raised by the client – whether it was worth pursuing the incentive at all.
Our client now enjoys a notable cash benefit of approximately $200,000 each year in the form of a reduced tax bill.
This outcome has had a substantial impact on their cash flow, providing a financial boost that can be reinvested in their operations. By successfully claiming R&DTI, they have not only reduced their tax burden but also accelerated their innovation endeavours. This financial relief has enabled them to allocate additional resources to R&D, allowing them to create competitive advantages in this industry and driving their overall growth.
Our partnership with the client showcases the value and effectiveness of the R&DTI. It demonstrates that even large companies can benefit from this incentive. It shows the benefits of employing our process to shorten the cost-benefit gap by minimising client time and effort and legitimately maximising the R&DTI claim.
This success story emphasises the importance of seeking expert guidance and support when navigating complex tax incentives, as it can lead to substantial financial gains. So, if you think the R&DTI is “not for us” or was told it’s too hard and not worth it, always ask for a second opinion.
If you would like to engage an R&D Tax Incentive specialist to determine whether or not your company qualifies for the R&D Tax Incentive then please reach out to Alan Baghdasarayan, Head of Innovation Advisory at BridgePoint Group.
Or call 1300 656 141 who will provide a free 30-minute consultation.