Industry Research and Development Act 1986

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

Division 6 - Consolidated groups and MEC groups  

SECTION 31   REGISTRATIONS AND FINDINGS NOT EFFECTIVE FOR SUBSIDIARY MEMBERS FOR GROUP R & D ACTIVITIES  

31(1)  
An R & D entity's registration under section 27A for an income year has no effect to the extent that the registration is for an activity conducted during a period that the R & D entity is a subsidiary member of a consolidated group or MEC group, of which the head company is an R & D entity.

Example:

If an activity is conducted by the R & D entity during all of an income year, and part way through the income year the R & D entity becomes a subsidiary member of a consolidated group:

  • (a) the R & D entity can apply to be registered for the activity for the income year, and that registration will be effective in respect of the first part of the income year; and
  • (b) the head company of the group can apply to be registered for the activity for the income year in respect of the second part of the income year.
  • 31(2)  
    If:


    (a) a finding is made under this Part on application by an R & D entity that is a subsidiary member of a consolidated group or MEC group; and


    (b) the head company of the group is also an R & D entity;

    the finding has no effect to the extent that the finding is for an activity conducted during a period that the R & D entity is a subsidiary member of the group.




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