(1) An amount (the notional amount ) that an * R&D entity can deduct under this Division is disregarded except for the purposes of:
(a) working out whether the R&D entity is entitled under section 355-100 to a * tax offset; and
(b) a provision (of this Act or any other Act) that refers to an entitlement of the R&D entity under section 355-100 to a tax offset; and
(c) a provision (of this Act or any other Act) that:
(i) prevents some or all of the notional amount from being deducted; or
(ii) changes the income year for which some or all of the notional amount can be deducted; and
Note: Examples are Divisions 26 and 27 of this Act, Subdivision H of Division 3 of Part III of the Income Tax Assessment Act 1936 and Part IVA of that Act.
(d) a provision (of this Act or any other Act) that includes an amount in assessable income wholly or partly because of the notional amount; and
Note: An example is Subdivision 20-A, which may include in assessable income a recoupment of a loss or outgoing if the entity can deduct an amount for the loss or outgoing.
(e) a provision (of this Act or any other Act) that excludes expenditure from:
(i) the * cost base or * reduced cost base of a * CGT asset; or
(ii) an element of that cost base or reduced cost base.
Note: An example is section 110- 45, which may exclude deductible expenditure from elements of the cost base of an asset.
(2) Subsection (1) does not apply to amounts that the * R&D entity can deduct under the following:
(a) subsection 355-315(2);
(b) subsection 355-475(1);
(c) subsection 355-525(2).