6 AUGUST

Other government funds can only be used for costs not covered by this grant, ie you can receive funds from another government scheme for the activity as long as the costs covered by it are different from those covered by the BDIG.

5 The grant is only paid for approved costs on the basis of original invoices matched to original receipts; photocopied or faxed copies of receipts and invoices are not acceptable. The only other basis on which claims can be paid is by forwarding an Accountant’s certification of costs to the Board. This must be by an independent accountant in public practice certifying a schedule of expenditure, matching expenditure claimed, to approved costs.

Please note that where hand-written receipts are provided, or where payment is noted on invoices, these must show the following:

• date of payment
• amount of payment
• signature of person receiving payment
• name of person receiving payment together with their designation

The only cost category for which you are not required to provide receipts and invoices is mileage; if you have a mileage category in your qualifying costs you must, however, supply a completed log sheet to the Board. A copy of this form is attached to this letter.

If goods or services have been paid for by credit card you must supply the original invoices for these together with the credit card statement to which these are charged to, plus a subsequent statement showing that payment has been made.

The prescribed “Claim Form”, a copy of which is attached to this letter, must be completed for each claim you lodge against the grant.

6 The grant is to be repaid if the project proceeds outside the region within two years of approval unless it can be shown that the activity is new to the region moved to.

7 A final report must be lodged with the Board before the grant lapse date specified in condition 2 of this letter. 10 percent of each eligible claim will be withheld and will only be paid out after this final report is received. Claims against the grant will only be considered if they are received by the Board before the grant’s expiry date. The prescribed form shall be used by applicants in reporting on their investigations.

8 Information on grant approvals can be made publicly available by the Board. This covers:

• grant recipient; region; amount of grant ) any time after
• a general statement on the scheme ) approval
• outcome of the activity assisted 6 months after report received

9 Any grant approved is personal to the applicant and may not be assigned without the written authority of the Board.

10 Grants are made subject to the Board being satisfied that the information given by the applicant is true and correct and that there has not been any omission of any relevant fact or misrepresentation made. The Board retains the right to refuse to make payments to approved applicants in cases where it determines that it has been misled by the applicant or if the applicant has been placed in receivership or declared bankrupt.

IMPLICATIONS OF THE GRANT FOR TAX PURPOSES

1 The grant is GST inclusive therefore, claims should be based on GST inclusive amounts.

2 If you are registered for GST you will have to account for the GST portion of the grant as output tax.

3 Section 169 of the Income Tax Act 1976 deals with grants such as this. Effectively, the grant is not assessable income as such but has the effect of reducing the costs which may be claimed for income tax purposes or, reducing the cost of assets for depreciation purposes.

We wish you well for the investigation.

Yours sincerely

Business Development Board