Industry Research and Development Act 1986

PART III - FUNCTIONS RELATING TO THE R & D TAX OFFSET  

Division 3 - Other findings  

Subdivision D - Findings about whether technology is core technology  

SECTION 28E   FINDINGS ABOUT WHETHER TECHNOLOGY IS CORE TECHNOLOGY  

28E(1)  
If an R & D entity has acquired, or has acquired the right to use, particular technology wholly or partly for the purposes of one or more R & D activities conducted, or to be conducted, during one or more income years, the Board may:


(a) find that the technology is core technology for the R & D activities; or


(b) find that the technology is not core technology for the R & D activities; or


(c) if justified in accordance with the decision-making principles - refuse to make a finding about the technology and the R & D activities.

Note 1:

A finding, or a refusal to make a finding, is reviewable (see Division 5 ).

Note 2:

A finding under paragraph (a) means that a tax offset will not be available for expenditure incurred in acquiring, or in acquiring the right to use, the technology for the R & D activities (see subsection 355-225(2) of the Income Tax Assessment Act 1997 ).

Note 3:

Section 32A deals with the decision-making principles.

28E(2)  
Particular technology is core technology for one or more R & D activities if:


(a) a purpose of the R & D activities was or is:


(i) to obtain new knowledge based on that technology; or

(ii) to create new or improved materials, products, devices, processes, techniques or services to be based on that technology; or


(b) the R & D activities were or are an extension, continuation, development or completion of the activities that produced that technology.

28E(3)  
The Board must make a finding under paragraph (1)(a) or (b) if requested by the Commissioner to make a finding under this section.

28E(4)  
In addition to subsection (3), the Board:


(a) may make a finding under subsection (1) on its own initiative; and


(b) must make a decision under subsection (1) if the R & D entity applies for a finding under this section.

Note:

For requirements of applications, see section 28G .

28E(5)  
This section has effect subject to section 32B (findings cannot be inconsistent with any earlier findings).




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