Ultimate Vision Inventions Pty Ltd and Innovation and Science Australia (Taxation)

This matter concerned an appeal by Ultimate Vision Inventions Pty Ltd against a decision by Innovation and Science Australia (the Respondent). The dispute centred on whether certain activities undertaken by the appellant, specifically the design and development of an integrated health and fitness program and cloud-based decision support systems, qualified as Research and Development (R&D) activities for the purposes of the R&D tax incentive. The case was heard by Mr A. Maryniak QC, Member.

The primary legal issue before the Tribunal was to determine whether the registered activities undertaken by the appellant constituted "core R&D activities" or "supporting R&D activities" as defined by the relevant provisions of the *Industry Research and Development Act 1986* (IR&D Act) and the *Income Tax Assessment Act 1997* (ITAA 1997). This involved assessing whether the activities met the statutory criteria for registration under section 27A of the IR&D Act, and whether the Respondent's findings under section 27J(1) of the IR&D Act, which allow for findings on whether registered activities were core or supporting R&D activities, were correct.

The Tribunal's reasoning focused on the statutory framework governing R&D entity registration and findings. It noted that the Respondent was empowered to examine registered activities and make findings as to whether they were core or supporting R&D activities. The Tribunal applied these provisions to the facts before it, considering the appellant's registered activities in the context of the definitions of core and supporting R&D activities. Ultimately, the Tribunal was not satisfied that any of the registered activities were conducted by or on behalf of the appellant in the relevant years as R&D activities within the meaning of the ITAA 1997.

Accordingly, the Tribunal affirmed the decision under review.