I am not wrong when it comes to the process of how R&D claims are managed, reviewed and paid. The R&D claim is paid through the tax system as a refund and not by AusIndustry. Reading some documents does not give you practical awareness of the reality of how systems work. AusIndustry are the approval body. I have upwards of 50 clients who undertake R&D claims. It is not a flick and tick process at all. Whether the activity they are claiming against is outside of regulation i wouldn't know but your statements as to how the system works is completely incorrect.
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