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-J - Application to R & D partnerships  

SECTION 355-520   When notional deductions arise for decline in value of depreciating assets of R & D partnerships  

When notional deductions arise

355-520(1)  
If:


(a) an *R & D entity is a partner of an *R & D partnership at some time during an income year (the present year ); and


(b) the partner is registered under section 27A of the Industry Research and Development Act 1986 for the present year for one or more *R & D activities that are activities to which section 355-210 (conditions for R & D activities) applies; and

Note:

Section 355-210 applies with changes for this paragraph (see section 355-515 ).


(c) while a tangible *depreciating asset is *held by the R & D partnership during the present year, the asset is used for the purpose of conducting one or more of those R & D activities; and


(d) the R & D partnership could deduct an amount under section 40-25 for the asset for the present year if Division 40 applied with the changes described in section 355-310 ; and

Note:

Section 355-310 applies with changes for this paragraph (see subsection (2) of this section).


(e) the R & D partnership cannot deduct an amount for the asset for:


(i) an earlier income year under Subdivision 328-D (capital allowances for small business entities); or

(ii) an earlier income year under Division 40 (as that Division applies apart from this Division), in a case where section 40-440 (low-value pools) applied;

the partner can deduct the partner ' s proportion of the amount referred to in paragraph (d) for the present year.

Changed application of Division 40 for this Subdivision

355-520(2)  
For the purposes of this Subdivision, section 355-310 applies as if the following changes were made:


Changes to be made
Item For a reference in section 355-310 to ... substitute a reference to ...
1 paragraph 355-305(1)(c) paragraph 355-520(1)(d)
2 section 355-315 section 355-525
3 paragraph 355-305(1)(b) paragraph 355-520(1)(c)
4 *R & D entity *R & D partnership

Disregard certain assets held because of CRC contributions

355-520(3)  
This section has effect subject to subsection 355-580(4) (CRC contributions).


 

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