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-F - Integrity Rules  

SECTION 355-410   Disposal of R & D results  

355-410(1)    
This section applies to an *R & D entity if:


(a) the R & D entity is entitled under section 355-100 to a *tax offset because it can:


(i) deduct under section 355-205 or 355-480 expenditure incurred on *R & D activities; or

(ii) deduct under section 355-305 or 355-520 an amount for an asset (the R & D asset ) used for the purpose of conducting one or more R & D activities; and


(b) the R & D entity receives or becomes entitled to receive one or more of the following amounts (the results amounts ) in an income year (the results year ):


(i) an amount for the results of any of the R & D activities;

(ii) an amount from granting access to, or the right to use, any of those results;

(iii) an amount attributable to the R & D entity having incurred the expenditure, including an amount it is entitled to receive regardless of the results of the R & D activities;

(iv) an amount attributable to the R & D asset being used for the purpose mentioned in subparagraph (a)(ii), including an amount the R & D entity is entitled to receive regardless of the results of the R & D activities;

(v) an amount from *disposing of a *CGT asset, or from granting a right to occupy or use a CGT asset, where the disposal or grant resulted in another person acquiring a right to access or use any of those results.
Note:

This section also applies with changes to the partners of an R & D partnership (see section 355-535 ).


355-410(2)    
For each results amount, the following amount is included in the *R & D entity ' s assessable income for the results year:


(a) if the results amount is only a results amount because of subparagraph (1)(b)(v), and the asset referred to in that subparagraph is a *depreciating asset - an amount equal to the extent (if any) that the results amount exceeds the asset ' s *cost just before the disposal or grant;


(b) if the results amount is only a results amount because of subparagraph (1)(b)(v), and the asset referred to in that subparagraph is not a depreciating asset - an amount equal to the extent (if any) that the results amount exceeds the asset ' s *cost base just before the disposal or grant;


(c) otherwise - the results amount.

355-410(3)    
For the purposes of paragraph (2)(a), assume that subsection 40-45(2) did not, except in the case of buildings and extensions, alterations and improvements to buildings, prevent Division 40 from applying to certain capital works.


 

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