Tax Law Improvement Act (No. 1) 1998 (46 of 1998)

4   Intellectual property (new Division 373)

3   Consequential amendment of the Income Tax Assessment Act 1936

20   Subsection 82KH(1) (at the end of the definition of relevant expenditure)

Add:

However, paragraph (ka), (oa) or (wa) only covers expenditure to the extent that:

(x) it is taken into account in working out under Division 373 of the Income Tax Assessment Act 1997 the taxpayer's unrecouped expenditure on the item in determining whether, apart from section 82KL of this Act, the taxpayer could deduct an amount under that Division for the item for a year of income; or

(y) it would be so taken into account apart from the following rules (about non-arm's length transactions):

(i) Common rule 2 (in Subdivision 41-B of that Act);

(ii) section 373-100 of that Act.