Post 29 January 2001 balancing profits
(relevant to Australian owned R&D only)
If the company is required by section 40-292 of the ITAA 1997 to include an amount in its assessable income following a balancing adjustment event (such as disposal), include at item 11 the part of the balancing adjustment amount that relates to the use of the asset for the purpose of carrying on Australian owned R&D. The part of the balancing adjustment amount assessable at the rate of 125% is worked out using the formula in subsection 40-292(4) of the ITAA 1997. The remaining part of the balancing adjustment amount that relates to the use of the asset for the purpose of carrying on Australian owned R&D is assessable at the rate of 100%. Any assessable amount relating to the use of the asset for another taxable purpose is not shown on the research and development tax concession schedule.
If the company is required by section 73BF of the ITAA 1936 to include an amount in its assessable income following a balancing adjustment event, include at item 11 the amount of the balancing adjustment. The part of the balancing adjustment amount assessable at the rate of 125% is worked out using the formula in subsection 73BF(3) of the ITAA 1936. The remaining part is assessable at the rate of 100%.
At P write the amount of any balancing adjustment (assessable amount).
At Q write any balancing adjustment (assessable amount) assessable at 100%.
At R write any balancing adjustment (assessable income) amounts assessable at 125%.
The total of the amounts at Q and R must equal the base amount at P.
For more information, see:
- section 40-292 of the ITAA 1997
- section 73BF of the ITAA 1936
- Guide to the R&D tax concession
- Guide to depreciating assets.