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-G - Clawback of R & D recoupments, feedstock adjustments and balancing adjustments  

Operative provisions

SECTION 355-446   Balancing adjustments for assets only used for R & D activities  

355-446(1)  
The *R & D entity has an amount under this section if:

(a)  a *balancing adjustment event happens in the present year for an asset *held by the R & D entity; and

(b)  the R & D entity cannot deduct, for the asset for an income year, an amount under section 40-25 as that section applies apart from:


(i) this Division; and

(ii) former section 73BC of the Income Tax Assessment Act 1936 ; and

(c)  the R & D entity is entitled under section 355-100 to *tax offsets for one or more income years for deductions under section 355-305 for the asset; and

(d)  the R & D entity is registered under section 27A of the Industry Research and Development Act 1986 for one or more *R & D activities for the present year; and

(e)  an amount (the section 40-285 amount ) is included in the R & D entity ' s assessable income for the present year under subsection 355-315(3) for the asset and the balancing adjustment event.

Note 1:

This section applies in a modified way if the entity also has deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 355-320 of the Income Tax (Transitional Provisions) Act 1997 ).

Note 2:

Section 40-292 applies if the entity can deduct an amount under section 40-25 , as that section applies apart from this Division and former section 73BC of the Income Tax Assessment Act 1936 .

355-446(2)  
The amount is so much of an amount equal to the section 40-285 amount as does not exceed the difference between:

(a)  the asset ' s *cost; and

(b)  the asset ' s *adjustable value, worked out under Division 40 as if that Division applied with the changes described in section 355-310 .


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