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Even though a provision is repealed or amended by this Act, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within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-H
-
Catch up deductions for balancing adjustment events for assets used for R
&
D activities
History
Subdiv 355-H substituted by No 92 of 2020, s 3 and Sch 5 item 29, effective 1 January 2021 and applicable in relation to assessments for income years commencing on or after 1 July 2021.
Subdiv 355-H 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.
Operative provisions
SECTION 355-475
Amount that can be deducted
355-475(1)
The *R
&
D entity can deduct, for the present year, the sum of the following amounts for each offset year relating to the catch up amount:
|
Adjusted offset
−
Starting offset
−
Deduction amount |
|
|
R
&
D entity
'
s *corporate tax rate for the present year |
|
where:
adjusted offset
means the *tax offset the R
&
D entity would have received under section
355-100
for the offset year if the total amount mentioned in subsection
355-100(1)
for that tax offset were increased by the portion of the catch up amount that is attributable to the offset year.
deduction amount
means the portion of the catch up amount that is attributable to the offset year, multiplied by the R
&
D entity
'
s *corporate tax rate for the offset year.
starting offset
means the amount of the *tax offset the R
&
D entity has received, or is entitled to receive, under section
355-100
for the offset year.
Note:
A deduction under this subsection is not a notional deduction: see subsection
355-105(2)
.
355-475(2)
However, if this section, or section
355-450
, has previously applied (whether in the present year or an earlier income year) in relation to another catch up amount, or clawback amount, the *R
&
D entity has that relates to the offset year, subsection (1) of this section applies as if:
(a)
the starting offset were the *tax offset the R
&
D entity would have received under section
355-100
for the offset year if the total amount mentioned in subsection
355-100(1)
were:
(i)
increased by the sum of the portions of any such other catch up amounts that are attributable to the offset year; and
(ii)
decreased by the sum of the portions of any such other clawback amounts that are attributable to the offset year; and
(b)
the reference to the
"
total amount
"
in the definition of
adjusted offset
were a reference to that amount as so adjusted.
History
S 355-475 substituted by No 92 of 2020, s 3 and Sch 5 item 29, effective 1 January 2021 and applicable in relation to assessments for income years commencing on or after 1 July 2021. S 355-475 formerly read:
SECTION 355-475 Application to connected entities and affiliates
355-475
This Subdivision applies to a *supply or use of the marketable product by:
(a)
an entity *connected with the *R
&
D entity; or
(b)
an *affiliate of the R
&
D entity or an entity of which the R
&
D entity is an affiliate;
as if it were by the R
&
D entity.
S 355-475 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.