INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 355 - Research and Development  

Subdivision 355-K - Modified application of the old R & D law  

SECTION 355-550   Prepayments of R & D expenditure extending into the 2011-12 income year  

Advance R and D expenditure

355-550(1)  
This section applies if, apart from former paragraph 73B(10)(a) of the Income Tax Assessment Act 1936 , an eligible company could deduct advance R and D expenditure in one or more income years commencing on or after 1 July 2011.

Note:

That deduction would be under former section 73B of that Act as that former section applies because of Part 2 of Schedule 4 to the Tax Laws Amendment (Research and Development) Act 2011 .

Other prepayments of R & D expenditure

355-550(2)  
This section also applies if:


(a) apart from Subdivision H (prepaid expenditure) of Division 3 of Part III of the Income Tax Assessment Act 1936 , an eligible company can deduct an amount under former section 73B , 73BA , 73BH , 73QA , 73QB or 73Y of that Act for an income year commencing before 1 July 2011; and


(b) that Subdivision applies to the calculation of that amount; and


(c) apart from former paragraph 73B(10)(a) of that Act, the eligible company could deduct an amount, as a result of that application of that Subdivision, for an income year commencing on or after 1 July 2011.

Note:

That deduction would be under that Act as it applies because of Part 2 of Schedule 4 to the Tax Laws Amendment (Research and Development) Act 2011 .

Changed registration requirement

355-550(3)  
Former paragraph 73B(10)(a) of that Act is taken to apply to those income years commencing on or after 1 July 2011 as if the reference in that former paragraph to section 39J of the Industry Research and Development Act 1986 were a reference to section 27A of that Act. Meaning of expressions

355-550(4)  
An expression used in this section that is also used in former section 73B of the Income Tax Assessment Act 1936 has the same meaning in this section as it has in that former section.




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