INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 355 - Research and Development  

Subdivision 355-W - Other matters  

SECTION 355-715   Implications for other deductions and tax offsets  

355-715(1)  
If an *R & D entity is entitled under section 355-100 to a *tax offset for an income year for expenditure it can deduct under section 355-205 , 355-480 or 355-580 , that expenditure:


(a) cannot be taken into account by any entity in working out a deduction under any other Division of this Act for any income year; and


(b) cannot be taken into account by any entity in working out a tax offset under any other Division of this Act for any income year.

Note:

Section 355-205 is about R & D expenditure, section 355-480 is about earlier year associate R & D expenditure, and section 355-580 is about CRC contributions.

355-715(2)  
If an *R & D entity is entitled under section 355-100 to a *tax offset for an income year for a deduction under section 355-305 , 355-315 , 355-520 or 355-525 of an amount equal to the decline in value of an asset, that decline in value:


(a) cannot be taken into account by any entity in working out a deduction under any other Division of this Act (other than section 40-292 or 40-293 ) for any income year; and


(b) cannot be taken into account by any entity in working out a tax offset under any other Division of this Act for any income year;

to the extent that the decline in value is attributable to the use of the asset for the purpose of conducting one or more of the *R & D activities to which the deduction relates.

Note 1:

A deduction may be available under section 40-25 to the extent that the asset ' s decline in value is attributable to another purpose. If so, that deduction under section 40-25 will not take into account the asset ' s decline in value to the extent that it is attributable to the R & D activities (see also subsection 40-25(2) ).

Note 2:

Section 355-305 is about the decline in value of R & D assets, section 355-315 is about balancing adjustments for R & D assets, section 355-520 is about the decline in value of R & D partnership assets, and section 355-525 is about balancing adjustments for R & D partnership assets.

Note 3:

Sections 40-292 and 40-293 deal with balancing adjustments when deductions have been available for the asset ' s decline in value both under this Division and section 40-25 .


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