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 355-525   Balancing adjustments for R & D partnership assets only used for R & D activities  

355-525(1)  
This section applies to an *R & D entity (the partner ) if:


(a) a *balancing adjustment event happens in an income year (the event year ) for an asset *held by an *R & D partnership; and


(b) the R & D partnership cannot deduct an amount under section 40-25 , as that section applies apart from:


(i) this Division; and

(ii) former section 73BC of the Income Tax Assessment Act 1936 ;
for the asset for an income year; and


(c) the partner is entitled under section 355-100 to *tax offsets for one or more income years for deductions (the R & D deductions ) under section 355-520 for the asset; and


(d) the partner is registered under section 27A of the Industry Research and Development Act 1986 for one or more *R & D activities for the event year; and


(e) if Division 40 applied with the changes described in section 355-310 (as affected by subsection 355-520(2) ):


(i) the R & D partnership could deduct for the event year an amount under subsection 40-285(2) for the asset and the balancing adjustment event; or

(ii) an amount would be included in the R & D partnership ' s assessable income for the event year under subsection 40-285(1) for the asset and the balancing adjustment event.
Note 1:

This section applies in a modified way if the partner has deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 355-325 of the Income Tax (Transitional Provisions) Act 1997 ).

Note 2:

Section 40-293 applies if the R & D partnership can deduct an amount under section 40-25 , as that section applies apart from this Division and former section 73BC of the Income Tax Assessment Act 1936 .

355-525(2)  
If the *R & D partnership could deduct for the event year an amount under subsection 40-285(2) for the asset and the event if Division 40 applied as described in paragraph (1)(e), the partner can deduct the partner ' s proportion of that amount for the event year.

Note 1:

A deduction under this subsection is not a notional deduction (see subsection 355-105(2) ).

Note 2:

A deduction under this subsection will result in a catch up amount for the partner (see section 355-467 ).

355-525(3)  


If an amount would be included in the *R & D partnership ' s assessable income for the event year under subsection 40-285(1) for the asset and the event if Division 40 applied as described in paragraph (1)(e), the partner ' s proportion of that amount is included in the partner ' s assessable income for the event year.
Note:

Some or all of the amount included in the partner ' s assessable income may result in a clawback amount for the partner (see section 355-448 ).

355-525(4)  
(Repealed by No 92 of 2020)

355-525(5)  
(Repealed by No 92 of 2020)

355-525(6)  
(Repealed by No 92 of 2020)

355-525(7)  
(Repealed by No 92 of 2020)


 

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