Chris Jordan speaks at the COSBOA National Small Business Summit.Credit:Paul Jeffers
Mr Jordan was critical of the R&D"industry"that has emerged in professional services firms.
"There is an industry of advisers out there that know all the buttons to push and the words to use in the application,"he said."I have seen large professional firms where the highest paid partner is an R&D partner. You have to scratch your head there and go'Gee how does that work?'
"Often it is done on a commission basis and it is a contingency fee. If you get this credit,I will get this payment. So there is an incentive."
The ATO has been criticised by Australian Small Business and Family Enterprise Ombudsman Kate Carnell for the clawbacks.
Ms Carnell said she has received a number of complaints from businesses about unfair treatment in relation to their claims by the ATO and AusIndustry.
Australian Small Business and Family Enterprise Ombudsman Kate Carnell.Credit:Jamila Toderas
"Of particular concern are audits going back several years,which have resulted in the ATO demanding businesses repay the R&D tax incentive,often with a severe penalty applied,"she said.