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-J - Application to R & D partnerships  

SECTION 355-540   Application of recoupment rules  

355-540(1)  
If:


(a) an *R & D partnership incurs expenditure (the partnership expenditure ) on *R & D activities; and


(b) an *R & D entity (the partner ) is entitled under section 355-100 to a *tax offset because it can, under section 355-205 or 355-480 , deduct some or all of that expenditure; and


(c) the R & D partnership receives an amount as a *recoupment of any or all of the partnership expenditure;

the partner is taken, for the purposes of Subdivisions 20-A and 355-G :


(d) to have incurred the partner ' s proportion of the partnership expenditure when the R & D partnership incurred that expenditure; and


(e) to have received the partner ' s proportion of the recoupment when the R & D partnership received the recoupment.

355-540(2)  
If:


(a) an *R & D entity (the partner ) is entitled under section 355-100 to a *tax offset because it can, under section 355-520 , deduct an amount for an income year for an asset; and


(b) the applicable *R & D partnership receives an amount as a *recoupment of any or all of the R & D partnership ' s expenditure included in the *cost of the asset for the purposes of the application of Division 40 as described in paragraph 355-520(1)(d) ;

the partner is taken, for the purposes of Subdivisions 20-A and 355-G :


(c) to have incurred the partner ' s proportion of that expenditure when the R & D partnership incurred that expenditure; and


(d) to have received the partner ' s proportion of the recoupment when the R & D partnership received the recoupment.


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