Over 20+
Successful 11D tax incentive approvals achieved with a 100% success rate.
R3 Million+
Over R3 million saved on R&D activities through the 11D Tax Incentive.
R2 Million+
Over R2 million in cash accessed from the SPII Grant.
The Players
Hydro Power Equipment
Hydro Power Equipment (HPE) has been a pioneer of innovative, hydro powered mining products and services for over three decades. Through innovative design and engineering excellence, HPE has proven the viability and the necessity for hydropower as an efficient energy delivery medium for cost-effective mining.
Catalyst Solutions
Catalyst Solutions are global leaders in identifying and securing innovative funding solutions including grants and tax incentives that will enable your business to innovate and grow. Their experience and specialist knowledge uniquely positions us to identify opportunities, pinpoint industry specific incentives and tailor a solution for each business.
01 The Challenge
As a company who invests significant resources and infrastructure into R&D, there was valuable opportunity to seek out tax incentives and grants for HPE’s key four areas of R&D: Drilling, Mechanisation, Valves and Rock Handling. However, like most finance departments, HPE’s tax team struggled to navigate the murky and unclear waters of local legislation and processes for claiming tax incentives and grants. Although HPE were aware that their R&D activities could possibly qualify for incentives, the administrative hassle, knowledge acquisition, and process was too overwhelming. Successfully completing the task in-house was no longer an option.
02 Mining value: A partnership is formed
As a company who invests significant resources and infrastructure into R&D, there was valuable opportunity to seek out tax incentives and grants for HPE’s key four areas of R&D: Drilling, Mechanisation, Valves and Rock Handling. However, like most finance departments, HPE’s tax team struggled to navigate the murky and unclear waters of local legislation and processes for claiming tax incentives and grants. Although HPE were aware that their R&D activities could possibly qualify for incentives, the administrative hassle, knowledge acquisition, and process was too overwhelming. Successfully completing the task in-house was no longer an option.
03 The Results
The Catalyst Solutions/HPE partnership has been a strong one for 7 years, and continues to generate consistent value. Catalyst have been able to contribute savings to HPE’s bottom line through two major incentive avenues:
Over R3 million Saved through Section 11D Tax Incentives
Catalyst Solutions has completed over 20 successful 11D tax incentive claims for HPE over 7 years, with a 100% success rate. They have saved HPE a total value of over R3 million.
VR2 million+ SPII Cash Grant: The Non-Throw Loader Project
HPE embarked on designing, prototyping and testing a hydro-powered rock loader with a unique combination of actions. Catalyst identified that the advancements to be achieved would result in an invention and therefore qualified for an 11D tax incentive AND a SPII Grant. The SPII grant was approved and valued at over R2 million.
The catalyst for an unfair advantage
Catalyst has had a 100% success rate with HPE, gaining approval for over 20 applications for the 11D tax incentive as well as the SPII Grant application. This helped HPE to unlock significant savings and cash resources that they could use to inject back into their R&D operations giving them a competitive advantage.
Conclusion
HPE has been able to offset eligible research on R&D against the tax paid on the company’s annual aggregated turnover in the most efficient manner by engaging with an experienced team with the know- how and resources to achieve 100% success year-after-year.
“The wealth of experience, knowledge and know-how that Catalyst Solution brought to the process made all the difference to effectively navigate through the claims process with minimal inputs required from HPE”
