Tax Laws Amendment (2007 Measures No. 5) Act 2007 (164 of 2007)

Schedule 11   Research and development

Part 2   Amendment of the Industry Research and Development Act 1986

72   After section 39L

Insert:

39LAAA Certificate as to Australian-centred research and development activities

(1) The Board may give to the Commissioner a certificate stating whether particular activities were Australian-centred research and development activities.

(2) The Board must give to the Commissioner a certificate described in subsection (1) if the Commissioner gives the Board a written request to do so.

(3) If:

(a) the activities covered by a certificate given under this section were or are carried on on behalf of a foreign company grouped under section 73L of the Income Tax Assessment Act 1936 with an eligible company that incurred expenditure in relation to the carrying on of the activities; and

(b) the certificate states that the activities were not Australian-centred research and development activities;

the Board must give notice in writing to the eligible company, stating the reasons for giving the certificate.

39LAAB Certificate as to activities that would be Australian-centred research and development activities apart from need for plan

(1) The Board may give to the Commissioner a certificate stating whether particular activities were activities that would have been Australian-centred research and development activities if subsection 73B(2BA) of the Income Tax Assessment Act 1936 had not been enacted.

Note 1: Subsection 73B(2BA) of the Income Tax Assessment Act 1936 says activities are not research and development activities unless they are carried on in accordance with a plan that complies with any guidelines formulated by the Board under section 39KA of this Act that are in force at the time.

Note 2: Activities may be ones that would have been Australian-centred research and development activities if subsection 73B(2BA) of the Income Tax Assessment Act 1936 had not been enacted, whether or not the activities were carried on in accordance with such a plan.

(2) The Board must give to the Commissioner a certificate described in subsection (1) if the Commissioner gives the Board a written request to do so.

(3) If:

(a) the activities covered by a certificate given under this section were or are carried on on behalf of a foreign company grouped under section 73L of the Income Tax Assessment Act 1936 with an eligible company that incurred expenditure in relation to the carrying on of the activities; and

(b) the certificate states that the activities were activities that would have been Australian-centred research and development activities if subsection 73B(2BA) of the Income Tax Assessment Act 1936 had not been enacted;

the Board must give notice in writing to the eligible company, stating the reasons for giving the certificate.