CBA withdraws legal action
The CBA release said it had “entered into an agreement” over the R&D tax claims with the ATO.
“Under the agreement terms, CBA has agreed to withdraw from all current proceedings with the ATO and Innovation and Science Australia (ISA) before the Administrative Appeals Tribunal (AAT) in respect of the eligibility of R&D claims that were made for the years ended 30 June 2012 and 30 June 2013 relating to the CBA core banking modernisation project that involved digital transformation and software development,” the announcement said.
“All other prior year matters have also been finalised. The agreement does not result in material impacts to CBA’s current or future year financial results.”
The cumulative amount of the claims by the banks, along with a other large R&D claims by listed companies, contributed to a $3 billion cost blowout in the R&D scheme, against a planned expenditure of $1.8 billion a year.
Deloitte, which has also made R&D rebate claims worth tens of millions on behalf of NAB and ANZ for technology projects, declined to comment.
Another big four consulting firm, PwC, laid off more than 30 staff and two partners resigned from its division advising companies about the R&D rebate after a number of clients were hit with government audits forcing them to pay back millions of dollars.