Private ruling: Early stage innovation company
Date of advice: 23 February 2018
Published: June 2018
Ruling period: Year ending 30 June 2017
Date scheme commenced: XX XX 2016

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 ending 30 June 2016 they had incurred expenses of less than $1 million and total assessable income of $200,000 or less. 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 ending 30 June 2016 they had incurred expenses of less than $1 million and total assessable income of $200,000 or less. 3. Company A is developing a product and information that details its development was provided.