Reflecting on our conservative philosophy, Swanson Reed is committed to transparent fee structures that mitigate risk. We prioritise hourly or fixed-fee engagements because a contingency model creates an incentive to maximise claim values, a motivation that directly conflicts with our conservative approach to claim preparation and risk management.

While fixed fees are our standard practice, we can offer contingency fees in limited circumstances for experienced clients who fully understand the risks involved in the Singapore R&D Tax Deduction/Enhanced Deduction process (administered by IRAS). In these cases, we will apply a separate risk policy, per the guidelines of our ISO:31000 Risk Management accreditation (see table below), and where relevant ‘Chinese walls’ or virtual barriers will apply to all staff involved in the relevant claim, ensuring each is focused on their own specific tasks and that the contingency arrangement is not causing any conflict.

Time Billing Approach:
Based on the hourly rates of the individual involved in the assignment and the amount of time expended on the job. Currently, our hourly rates range from $195 - $395 per hour.
Fixed Fee Approach:
Under this option our fees are solely a function of the benefit that is received as a result of our efforts. Where there is no benefit, we will not charge any fee, regardless of how much time we spend on the assignment.
Hybrid Fee Approach:
Representing a mix of our scheduled rate approach and fixed fee option.
No charge for 'out of pocket' expenses:
Swanson Reed will not charge for disbursements. Rarely, where there is an unforeseen and substantial cost to us, and that cost is necessary to the assignment, we will mutually agree that cost in advance.

 

 

Software Development Claim | Fee Example | IRAS R&D Deduction Review

  • The Project: A tech start-up is creating a new mobile app that uses a proprietary algorithm to analyse user data in real-time and provide personalised financial advice.
  • The Uncertainty: The team isn’t sure how to process the massive volume of data in real-time on a mobile device without causing significant battery drain or performance issues. They try multiple different data compression techniques and processing architectures, with many failed experiments and iterations.
  • The Claim: The company may claim Singapore’s R&D Tax Deduction (under Section 14D/14DA of the Income Tax Act) for the time and costs associated with the experimentation, testing, and development of the new algorithm and its implementation to overcome the technological uncertainty, provided activities meet the IRAS definition of R&D.
  • Job Scope: This client has prepared their own claim and wants a third-party review. The client hired one of Swanson Reed’s consultants to review their claim for 2 hours.
  • The Fees: S$195 x 2 hours = S$390

 

Food & Beverage Claim | Fee Example | IRAS R&D Audit Documentation Response

  • The Project: A food manufacturer wants to create a new line of protein bars with a longer shelf life without using any artificial preservatives.
  • The Uncertainty: The team is uncertain which combination of natural ingredients will allow the product to remain stable and palatable for an extended period. They test various combinations of natural sweeteners, binders, and fruit extracts, experimenting with different ratios and processing methods.
  • The Claim: The company can claim the Singapore R&D Deduction for the time spent on formulating, testing, and analysing the various ingredient combinations and processing techniques to resolve the scientific uncertainty, subject to IRAS eligibility criteria.
  • Job Scope: This client has received an IRAS query letter and has asked a Swanson Reed director to prepare their fourth response. It takes 2 hrs to prepare the supporting documentation.
  • The Fees: S$395 x 2 hours = S$790

 

Manufacturing & Engineering Claim | Fee Example | R&D Technical Consulting Assistance

  • The Project: An engineering firm is designing a new type of lightweight drone for commercial delivery.
  • The Uncertainty: The team is unsure how to design a new wing and motor system that maximises lift and stability while minimising weight. They build and test multiple prototypes, conducting a series of aerodynamic experiments and using new composite materials that have never been applied in this way.
  • The Claim: The company may claim the costs related to the salaries of the engineers and designers, the materials used for the prototypes, and the expenses for the testing and analysis required to resolve the technological uncertainties, provided the activities qualify as “systematic, investigative and experimental” under IRAS guidelines.
  • Job Scope: This client has asked for one of our directors with a professional engineering qualification to conduct a 1 hr training session with their engineering team on IRAS’s R&D eligibility requirements (systematic investigation, scientific/technological uncertainty, and creation of new knowledge).
  • The Fees: S$395 x 1 hour = S$395

 

Our ISO31000 Risk Management Compliance Framework to ensure Fee Transparency and a Conservative approach

The table below consolidates the key elements of Swanson Reed’s trust and compliance framework, detailing their implications for clients.

Framework Element Description Implication for Clients
Six-Eye Review A mandatory internal review of every claim by a qualified engineer, a scientist, and a Chartered Accountant. Ensures the claim is technically robust, financially accurate, and compliant with IRAS guidance, maximising defensibility in the event of an audit.
ISO 31000 (Risk Management) Where a contingency or success fee cannot be avoided, a separate internal conflict register for staff involved in the claim that meets ISO31000 standards. Provides objective, third-party validation of the firm’s commitment to mitigating client tax risk.
ISO 27001 (Information Security) A leading global standard for establishing and maintaining an information security management system (ISMS). All staff will have virtual barriers and focus only on their part of the claim. They will not have access during the engagement to other staff members working on costing segments of the claim. Guarantees the highest level of protection for sensitive intellectual property and confidential financial data.