Private ruling: Early Stage Innovation Company
Date of advice: 28 November 2017
Published: April 2018
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Does Company A meet the criteria of an Early Stage Innovation Company (ESIC) under subsection 360-40(1) of the Income Tax Assessment Act 1997 ? | A1: Yes

Relevant facts and circumstances: 1. Company A was incorporated in Australia on Date X. Its equity interests are not listed for quotation in the official list of any stock exchange. 2. Company A has no subsidiaries and in the previous income year, i.e. the year ended 30 June 2017 they had incurred expenses of $X and assessable income of $X. 3. Company A is developing a product and information that details its development was provided.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 360-A | Income Tax Assessment Act 1997 section 360-40 | Income Tax Assessment Act 1997 section 360-45

Reasons for decision: Summary: 1. Company A was incorporated in Australia on Date X. Its equity interests are not listed for quotation in the official list of any stock exchange. 2. Company A has no subsidiaries and in the previous income year, i.e. the year ended 30 June 2017 had incurred expenses of $X and assessable income of $X. 3. Company A is developing a product and information that details its development was provided.