INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision H - Period of deductibility of certain advance expenditure  

SECTION 82KZL   INTERPRETATION  

82KZL(1)  


In this Subdivision, unless the contrary intention appears:

agreement
means any agreement, arrangement, understanding or scheme, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.

approved stock exchange
(Repealed by No 114 of 2010)

associate
has the meaning given by section 318.

eligible service period
, in relation to an amount of expenditure incurred under an agreement, means the period from the beginning of:


(a) the day, or the first day, on which the thing to be done under the agreement in return for the amount of expenditure is required, or permitted, as the case may be, to commence being done; or


(b) if the expenditure is incurred on a later day - the day on which the expenditure is incurred;

until the end of:


(c) the day, or the last day, on which the thing to be done under the agreement in return for the amount of expenditure is required, or permitted, as the case may be, to cease being done; or


(d) if that day or last day ends more than 10 years after the beginning of the period - 10 years after the beginning of the period.

excluded expenditure
means an amount of expenditure:


(a) less than $1,000; or


(b) required to be incurred by a law, or by an order of a court, of the Commonwealth, a State or a Territory; or


(c) under a contract of service; or


(d) to the extent that it is of a capital nature and cannot be deducted under:


(i) section 355-205 (R&D expenditure); or

(ii) section 355-480 (earlier year associate R&D expenditure);
of the Income Tax Assessment Act 1997; or


(da) to the extent that it is of a private or domestic nature; or


(e) that has been or is incurred after 21 September 1999 by a general insurance company in connection with the issue of a general insurance policy and was related or relates to the gross premiums derived by the company in respect of the policy; or


(f) that has been or is incurred after 21 September 1999 by a general insurance company in payment of reinsurance premiums in respect of the reinsurance of risks covered by general insurance policies, other than reinsurance premiums that were or are paid in respect of a particular class of insurance business where, under the contract of reinsurance, the reinsurer agrees, in respect of a loss incurred by the company that is covered by the relevant policy, to pay only some or all of the excess over an agreed amount.

pre-RBT obligation
means a contractual obligation that:


(a) exists under an agreement at or before 11.45 am (by legal time in the Australian Capital Territory) on 21 September 1999; and


(b) requires the payment of an amount for the doing of a thing under the agreement; and


(c) requires the payment to be made before the doing of the thing; and


(d) cannot be escaped by unilateral action by the party bound by the obligation to make the payment.

R&D activities
has the same meaning as in the Income Tax Assessment Act 1997.

research and development activities
(Repealed by No 93 of 2011)

small business taxpayer
(Repealed by No 80 of 2007)

STS taxpayer
(Repealed by No 80 of 2007)

transfer
includes assign.

82KZL(2)  
Without otherwise limiting the generality of references in this Subdivision to expenditure being incurred under an agreement in return for the doing of a thing under the agreement:


(a) where expenditure incurred under an agreement consists of a payment of loan interest or a payment of a similar kind, the expenditure shall, for the purposes of this Subdivision, be taken to be incurred in return for the making available or continued making available, as the case requires, of the loan principal, or other amount of a similar kind, under the agreement during the period to which the payment relates; and


(b) where expenditure incurred under an agreement consists of a payment of rent, a lease payment or a payment of a similar kind, the expenditure shall, for the purposes of this Subdivision, be taken to be incurred in return for the making available or continued making available, as the case requires, of the thing rented or leased, or other thing of a similar kind, under the agreement during the period to which the payment relates; and


(c) where expenditure incurred under an agreement consists of a payment of an insurance premium or a payment of a similar kind, the expenditure shall, for the purposes of this Subdivision, be taken to be incurred in return for the provision or continued provision, as the case requires, of insurance against the risk concerned, or of a thing of a similar kind, under the agreement during the period to which the payment relates.

82KZL(3)  


This Subdivision has effect as if conducting R&D activities were carrying on a business.

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