Paragraph 6 of the Guidelines on the meaning of research and development for tax purposes states:
"An advance in science or technology means an advance in overall knowledge or capability in a field of science or technology (not a company’s own state of knowledge or capability alone)."
What does the part in brackets mean?
If a company develops a process but doesn't disclose it to the outside world it seems to me that it is only the company's knowledge that has advanced. Does this mean that the activity is not R&D? If not, why not please?
Am I missing the obvious?
Thanks in advance.