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-H - Catch up deductions for balancing adjustment events for assets used for R & D activities  

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.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.