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.


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.