Income Tax Assessment Act 1936
Div 3 heading inserted by No 172 of 1978.
(Repealed by No 93 of 2011)
S 73QB repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011. For application, savings and transitional provisions see note under s
82KZLB
. S 73QB formerly read:
Section
73R
provides for:
SECTION 73QB EXTRA DEDUCTION FOR INCREASE IN EXPENDITURE ON FOREIGN OWNED RESEARCH AND DEVELOPMENT
Prerequisites for deduction
73QB(1)
An eligible company may deduct an amount for the Y
0
year of income if:
(a)
the company can deduct an amount for that year under subsection
73B(14C)
for expenditure incurred in the company
'
s group membership period; and
(b)
for each of the Y
-1
, Y
-2
and Y
-3
years of income, any of the following conditions is met:
(i)
the eligible company could deduct for the year of income an amount under subsection
73B(14C)
for expenditure in its group membership period;
(ii)
one of the eligible company
'
s other group members could deduct for the year of income an amount under subsection
73B(14C)
for expenditure in its group membership period;
(whether or not the same condition in this paragraph is met for 2 or more of those years, and whether or not such a condition is met by the same company for 2 or more of those years); and
(iii)
the year of income is one (a
nil expenditure year
) for which both the conditions in subsection (2) are met;
(c)
the amount (the
eligible company
'
s share of the foreign owned part of the adjusted increase in expenditure on R
&
D by the group
) worked out under subsection (4) is more than zero.
73QB(2)
For the purposes of subparagraph (1)(b)(iii), the conditions for a nil expenditure year are as follows:
(a)
neither the eligible company nor any other group member (determined under section
73R
) of the eligible company existed at any time in the nil expenditure year or the 10 immediately preceding years of income;
(b)
at no time in the nil expenditure year or the 10 immediately preceding years of income did any of the following carry on business in Australia:
(i)
a foreign company that was grouped under section
73L
with the eligible company at any time in the Y
0
, Y
-1
, Y
-2
or Y
-3
year of income;
(ii)
a foreign company that was grouped under section
73L
with another group member (under section
73R
) of the eligible company at any time during the other group member
'
s group membership period (under section
73R
);
(iii)
a person who was grouped under section
73L
with a foreign company described in subparagraph (i) or (ii) at any time in the nil expenditure year or the 10 immediately preceding years of income.
Note:
73QB(3)
The eligible company may deduct an amount for the Y 0 year of income equal to 75% of the eligible company ' s share of the foreign owned part of the adjusted increase in expenditure on R & D by the group.
73QB(4)
The eligible company ' s share of the foreign owned part of the adjusted increase in expenditure on R & D by the group is the amount worked out using the formula:
Increase in expenditure on foreign owned R & D by the eligible company | × | Net increase in expenditure on foreign owned R & D by the group | × | Adjusted increase in expenditure on R & D by the group |
Total increase in expenditure on foreign owned R & D by the eligible companies in the group | Net increase in expenditure on Australian owned R & D by the group | + | Net increase in expenditure on foreign owned R & D by the group |
adjusted increase in expenditure on R
&
D by the group
means the amount worked out under section
73RE
.
increase in expenditure on foreign owned R
&
D by the eligible company
means the amount worked out under subsection
73RB(1)
.
net increase in expenditure on Australian owned R
&
D by the group
means the amount worked out under section
73RC
.
net increase in expenditure on foreign owned R
&
D by the group
means the amount worked out under section
73RD
.
total increase in expenditure on foreign owned R
&
D by the eligible companies in the group
means the amount worked out under subsection
73RB(2)
.
Note:
The amount worked out using the formula will not be more than zero if at least one of the following is zero:
73QB(5)
To avoid doubt, an eligible company for which there are no other group members may be able to deduct an amount under subsection (1).
Note:
For an eligible company for which there are no other group members, the values of the following components of the formula in subsection (4) will all be the same:
S 73QA and 73QB substituted for s 73Q by No 164 of 2007 , s 3 and Sch 11 item 34, effective 25 September 2007. For application provision, see note under s 73B(1AAA) . For transitional provisions regarding reduced notional expenditure on foreign owned R & D, see note under s 73P(1) .
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