Taxation Determination

TD 93/233W

Income tax: is the allotment of shares as consideration for services performed by another party on research and development activities expenditure incurred under section 73B of the Income Tax Assessment Act 1936 (ITAA)?

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FOI status:

Notice of Withdrawal

Taxation Determination TD 93/233 is withdrawn with effect from today.

Whether or not there is 'expenditure incurred' under section 73B depends on whether there is expenditure actually made or expenditure arising from a presently existing liability. This point was not made sufficiently clear in the Taxation Determination. Further, the question is one to be determined on the facts of each case, and it is not possible to cover all the relevant principles and their application to various factual situations in a Taxation Determination.

Taxpayers requiring advice on this matter can apply for a private ruling.

Commissioner of Taxation
2 September 1998

Previously issued as Draft TD 93/D172

References

ATO references:
NO NAT 88/4630-8

Subject References:
issue of shares
expenditure incurred
research and development

Legislative References:
ITAA 73B

Case References:
Ord Forrest Pty Ltd v F.C. of T
(1974) 130 CLR 124