CHAPTER 3
-
SPECIALIST LIABILITY RULES
PART 3-45
-
RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS
Division 355
-
Research and Development
History
Div 355 inserted by No 93 of 2011, s 3 and Sch 1 item 1, effective 8 September 2011.
No 93 of 2011, s 3 and Sch 4 items 1 to 6 contains the following application, savings and transitional provisions:
Schedule 4
-
Application, savings and transitional provisions
Part 1
-
Application provisions
1 Application of repeals and amendments
(1)
The repeals and amendments made by this Act apply:
(a)
so far as they affect assessments
-
to assessments for income years commencing on or after 1 July 2011; and
(b)
so far as they relate to income years but do not affect assessments
-
to income years commencing on or after 1 July 2011; and
(c)
otherwise
-
to acts done or omitted to be done, states of affairs existing, or periods ending on or after the commencement of the first income year commencing on or after 1 July 2011.
Note:
For the purposes of an assessment for an income year commencing on or after 1 July 2011, regard may still be had to acts done or omitted to be done, states of affairs existing, or periods ending during an earlier income year. For example, regard may be had to expenditure incurred by other entities in income years commencing before 1 July 2011 for the purposes of paragraph
355-415(1)(b)
of the
Income Tax Assessment Act 1997
.
(2)
However, each of the following applies in relation to the 2011-12 financial year and all later financial years:
(a)
section
29E
of the
Industry Research and Development Act 1986
(as inserted by Schedule 2);
(b)
the repeal of paragraph
39H(b)
of the
Industry Research and Development Act 1986
;
(c)
section
46
of the
Industry Research and Development Act 1986
(as amended by this Act).
Part 2
-
General savings provisions
2 Object
2
The object of this Part is to ensure that, despite the repeals and amendments made by this Act, the full legal and administrative consequences of:
(a)
any act done or omitted to be done; or
(b)
any state of affairs existing; or
(c)
any period ending;
before such a repeal or amendment applies, can continue to arise and be carried out, directly or indirectly through an indefinite number of steps, even if some or all of those steps are taken after the repeal or amendment applies.
3 Making and amending assessments, and doing other things etc., in relation to past matters
(1)
Even though a provision is repealed or amended by this Act, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within the meaning of the
Legislative Instruments Act 2003
):
(a)
making or amending an assessment (including under a provision that is itself repealed or amended);
(b)
exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);
in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.
Note:
Examples of things covered by this subitem are as follows:
(a) an eligible company may object under Part
IVC
of the
Taxation Administration Act 1953
in an income year commencing on or after 1 July 2011 about a notice given under former section
73I
of the
Income Tax Assessment Act 1936
for an income year commencing before 1 July 2011;
(b) an eligible company seeking registration under former section
39J
of the
Industry Research and Development Act 1986
for an income year commencing before 1 July 2011 may do so during an income year commencing on or after 1 July 2011;
(c) Innovation Australia may give a certificate under former section
39M
of the
Industry Research and Development Act 1986
in an income year commencing on or after 1 July 2011 about research and development activities registered for an income year commencing before 1 July 2011.
(2)
Even though a provision is repealed or amended by this Act, the repeal or amendment is disregarded so far as it relates to a state of affairs:
(a)
that exists after the repeal or amendment applies; and
(b)
that relates to:
(i)
an act done or omitted to be done; or
(ii)
a state of affairs existing; or
(iii)
a period ending;
before the repeal or amendment applies.
Note:
Examples of things covered by this subitem are as follows:
(a) an amount may be included in an eligible company
'
s assessable income under former subsection
73BF(4)
of the
Income Tax Assessment Act 1936
for an income year commencing on or after 1 July 2011 if the company receives in that income year an amount for the results of research and development activities for which the company had deductions under former section
73BA
of that Act in an income year commencing before 1 July 2011;
(b) an eligible company
'
s deduction under section
73B
of the
Income Tax Assessment Act 1936
for expenditure incurred during an income year commencing before 1 July 2011 is reduced because of section
73C
of that Act if, in an income year commencing on or after 1 July 2011, the company receives a recoupment of that expenditure from the Commonwealth.
(3)
To avoid doubt, this item extends to the repeal of subsection
286-75(3)
, and paragraph
286-80(2)(b)
, in Schedule
1
to the
Taxation Administration Act 1953
. In particular, if, in a particular case, the period in respect of which an administrative penalty is payable under subsection
286-75(3)
in that Schedule:
(a)
has not begun; or
(b)
has begun but not ended;
when those provisions are repealed, then, despite the repeal, those provisions continue to apply in the particular case until the end of the period.
4 Saving of provisions about effect of assessments
4
If a provision or part of a provision that is repealed or amended by this Act deals with the effect of an assessment, the repeal or amendment is disregarded in relation to assessments made, before or after the repeal or amendment applies, in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.
5 Repeals disregarded for the purposes of dependent provisions
5
If the operation of a provision (the
subject provision
) of any Act or legislative instrument (within the meaning of the
Legislative Instruments Act 2003
) made under any Act depends to any extent on a provision that is repealed by this Act, the repeal is disregarded so far as it affects the operation of the subject provision.
6 Schedule does not limit operation of the
Acts Interpretation Act 1901
6
This Schedule does not limit the operation of the
Acts Interpretation Act 1901
.
Subdivision 355-E
-
Notional deductions etc. for decline in value of depreciating assets used for R
&
D activities
History
Subdiv 355-E heading amended by No 92 of 2020, s 3 and Sch 5 item 24, by inserting
"
etc.
"
, effective 1 January 2021 and applicable in relation to assessments for income years commencing on or after 1 July 2021.
Subdiv 355-E inserted by No 93 of 2011, s 3 and Sch 1 item 1, effective 8 September 2011. For application, savings and transitional provisions see note under Div
355
heading.
SECTION 355-315
Balancing adjustments
-
assets only used for R
&
D activities
355-315(1)
This section applies to an *R
&
D entity if:
(a)
a *balancing adjustment event happens in an income year (the
event year
) for an asset *held by the R
&
D entity; and
(b)
the R
&
D entity cannot deduct an amount under section
40-25
, as that section applies apart from:
(i)
this Division; and
(ii)
former section
73BC
of the
Income Tax Assessment Act 1936
;
for the asset for an income year; and
(c)
the R
&
D entity is entitled under section
355-100
to *tax offsets for one or more income years for deductions (the
R
&
D deductions
) under section
355-305
for the asset; and
(d)
the entity is registered under section
27A
of the
Industry Research and Development Act 1986
for one or more *R
&
D activities for the event year; and
(e)
if Division
40
applied with the changes described in section
355-310
:
(i)
the entity could deduct for the event year an amount under subsection
40-285(2)
for the asset and the balancing adjustment event; or
(ii)
an amount would be included in the entity's assessable income for the event year under subsection
40-285(1)
for the asset and the balancing adjustment event.
Note 1:
This section applies in a modified way if the entity also has deductions for the asset under former section
73BA
or
73BH
of the
Income Tax Assessment Act 1936
(see section
355-320
of the
Income Tax (Transitional Provisions) Act 1997
).
Note 2:
Section
40-292
applies if the entity can deduct an amount under section
40-25
, as that section applies apart from this Division and former section
73BC
of the
Income Tax Assessment Act 1936
.
355-315(2)
If the *R
&
D entity could deduct for the event year an amount under subsection
40-285(2)
for the asset and the event if Division
40
applied as described in paragraph (1)(e), the R
&
D entity can deduct that amount for the event year.
Note 1:
A deduction under this subsection is not a notional deduction (see subsection
355-105(2)
).
Note 2:
A deduction under this subsection results in a catch up amount for the R
&
D entity (see section
355-465
).
History
S 355-315(2) amended by No 92 of 2020, s 3 and Sch 5 item 27, by inserting notes 1 and 2, effective 1 January 2021 and applicable in relation to assessments for income years commencing on or after 1 July 2021.
355-315(3)
If an amount would be included in the *R
&
D entity
'
s assessable income for the event year under subsection
40-285(1)
for the asset and the event if Division
40
applied as described in paragraph (1)(e), that amount is included in the R
&
D entity
'
s assessable income for the event year.
Note:
Some or all of the amount included in the R
&
D entity
'
s assessable income may result in a clawback amount for the R
&
D entity (see section
355-446
).
History
S 355-315(3) substituted by No 92 of 2020, s 3 and Sch 5 item 28, effective 1 January 2021 and applicable in relation to assessments for income years commencing on or after 1 July 2021. S 355-315(3) formerly read:
Amount to be included in assessable income
355-315(3)
If an amount (the
section 40-285 amount
) would be included in the *R
&
D entity's assessable income for the event year under subsection 40-285(1) for the asset and the event if Division 40 applied as described in paragraph (1)(e), the sum of that amount and the following amount is included in the R
&
D entity's assessable income for the event year:
Adjusted section 40-285 amount |
× |
1
|
3 |
where:
adjusted section 40-285 amount
means so much of the section 40-285 amount as does not exceed the total decline in value.
total decline in value
means the asset's *cost, less its *adjustable value, worked out under Division 40 as it applies as described in paragraph (1)(e).
History
S 355-315 inserted by No 93 of 2011, s 3 and Sch 1 item 1, effective 8 September 2011. For application, savings and transitional provisions see note under Div
355
heading.