EC 2017: R&D offset calculates incorrectly where company is an early balancer

This support note applies to:

• AO Tax (AU)
• AE Tax Series 6 & 8 (AU)
• AE Tax (AU)

In MYOB Accountants Enterprise (AE) and Accountants Office (AO) Tax version 2017.0, where the taxpayer is an early balancer under the Substituted Accounting Period (SAP), the Research and Development (R&D) tax incentive tax offset calculates incorrectly.

This issue occurs for early balancers lodging a 2017 Company Tax Return for the 2016 calendar year, 1 January to 31 December 2016.

For the 2016 calendar year the R&D tax offset should calculate as follows:

Refundable tax offset = Notional R&D deductions x 45% plus 30% excess > $100mil cap
Non-refundable tax offset = Notional R&D deductions x 40% plus 30% excess > $100mil cap

For income years starting on or after July 1 2016 new offset rates apply:

Refundable tax offset = Notional R&D deductions x 43.5% plus 30% excess > $100mil cap
Non-refundable tax offset = Notional R&D deductions x 38.5% plus 30% excess > $100mil cap

For more information on the changes to the Research and Development Tax Incentive refer to EC 2017: Changes to the Research and Development Tax Incentive (Offset)

MYOB has addressed this issue in MYOB Tax, version 2017.0a.
Please refer to the my.MYOB Product Downloads page, Australia to download the latest release.