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-E - Notional deductions for decline in value of depreciating assets used for R & D activities  

SECTION 355-305   When notional deductions for decline in value arise  

355-305(1)  
If:


(a) an *R & D entity is registered under section 27A of the Industry Research and Development Act 1986 for an income year (the present year ) for one or more *R & D activities that are activities to which section 355-210 (conditions for R & D activities) applies; and


(b) while a tangible *depreciating asset is *held by the R & D entity during the present year, the asset is used for the purpose of conducting one or more of those R & D activities; and


(c) the R & D entity could deduct an amount under section 40-25 for the asset for the present year if Division 40 applied with the changes described in section 355-310 ; and


(d) the R & D entity cannot deduct an amount for the asset for:


(i) an earlier income year under Subdivision 328-D (capital allowances for small business entities); or

(ii) an earlier income year under Division 40 (as that Division applies apart from this Division), in a case where section 40-440 (low-value pools) applied;

the R & D entity can deduct the amount referred to in paragraph (c) for the present year.

355-305(2)  
This section has effect subject to subsection 355-580(4) (CRC contributions).


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