INCOME TAX ASSESSMENT ACT 1997
The extra income tax is payable for the trigger year on an amount (the R & D expenditure ) equal to the sum of:
(a) so much of the expenditure referred to in section 355-445 that is deducted under this Division; and
(b) for each asset (if any) for which expenditure referred to in section 355-445 is included in the asset ' s *cost - each amount (if any) equal to the asset ' s decline in value that is deducted under this Division;
in working out *tax offsets under section 355-100 obtained by the entity (the recipient ), or an entity mentioned in subsection (4), for one or more income years.
Paragraphs (a) and (b) of this subsection refer to amounts notionally deducted under this Division (see section 355-105 ).Amount is reduced by any repayments of the recoupment 355-450(2)
For the purposes of subsection (1), reduce the expenditure referred to in subparagraph 355-445(b)(i) by any repayments of the *recoupment during an income year. Cap on extra income tax if recoupment relates to a project 355-450(3)
Despite subsection (1), if the *recoupment is covered by subparagraph 355-445(b)(ii) , the amount of extra income tax payable for the trigger year on the recoupment cannot exceed the following amount:
|Net amount of the recoupment||×||
The other entities for the purposes of subsection (1) are as follows:
(a) an entity *connected with the recipient;
(b) an *affiliate of the recipient or an entity of which the recipient is an affiliate.