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 355-447   Balancing adjustments for assets partially used for R & D activities  

355-447(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 for which:


(i) the R & D entity can deduct, for an income year, an amount under section 40-25 , as that section applies apart from Division 355 and former section 73BC of the Income Tax Assessment Act 1936 ; or

(ii) the R & D entity could have deducted, for an income year, an amount as described in subparagraph (i) if the R & D entity had used the asset; and

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

(c)  an amount (the section 40-285 amount ) is included in the R & D entity ' s assessable income for the asset under section 40-285 (after applying subsection 40-292(2) ) for the present year.

Note:

This section applies in a modified way if you have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40-292 of the Income Tax (Transitional Provisions) Act 1997 ).

355-447(2)  
The amount is worked out as follows:


Total R & D deductions
Total decline in value
  × Adjusted section 40-285 amount

where:

adjusted section 40-285 amount
means so much of an amount equal to the section 40-285 amount as does not exceed the total decline in value.

total decline in value
means the *cost of the asset less its *adjustable value.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.