A joint investigation by the ATO has led to $13.6 million in penalties after a Sydney business coach was found to have promoted unlawful tax schemes between 2014 and 2017.
The schemes encouraged clients to lodge over-inflated, inaccurate, or unsubstantiated R&D tax incentive claims, leading to serious legal consequences.
The Federal Court’s decision
- The business coach has been ordered to pay $4.5 million in penalties.
- Related companies involved in the schemes face a further $9 million in penalties.
- A company co-director (and former tax agent) was also hit with a $100,000 penalty for their role in promoting the schemes.
This case serves as a strong reminder—R&D tax incentive claims must be legitimate, properly documented, and compliant with ATO rules. If you have any concerns about your R&D claims, speak to your contact at Quantiphy—we’re here to help.
