Income Tax Assessment Act 1997
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
(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.
(ii) former section 73BC of the Income Tax Assessment Act 1936 ; and
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 ).
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 .