Last week, the Full Federal Court (per Davies, Moshinsky and
Steward JJ) handed down a decision in Moreton Resources Limited
v Innovation and Science Australia [2019] FCAFC 120. The
outcome (subject to any appeal) could help resolve similar tax
disputes under review or currently being appealed, particularly in
circumstances where the disputes relate to R&D activities
involving the application of existing technology at a new site.
The decision related to the interpretation of the "core
R&D activities" concept in s 355-25(1) of the research and
development (R&D) tax offset provisions,
contained in Division 355 of the Income Tax Assessment Act
1997 (Cth) (ITAA97).
The Court allowed the applicant's (Moreton Resources Limited
(Moreton)) appeal from a decision of the
Administrative Appeals Tribunal (the Tribunal) on
the basis that the Tribunal had construed the words
"experimental activities" in s 355-25(1) of the ITAA97
too narrowly, by concluding that activities that
