Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.205

When notional deductions for R&D expenditure arise

             (1)  An * R&D entity can deduct for an income year (the present year ) expenditure it incurs during that year to the extent that the expenditure:

                     (a)  is incurred on one or more * R&D activities:

                              (i)  for which the R&D entity is registered under section 27A of the Industry Research and Development Act 1986 for an income year; and

                             (ii)  that are activities to which section 355- 210 (conditions for R&D activities) applies; and

                     (b)  if the expenditure is incurred to the R&D entity's * associate--is paid to that associate during the present year.

Note 1:       If the matters in subparagraphs (a)(i) and (ii) are not satisfied until a later income year, the R&D entity will need to wait until then before it can deduct the expenditure for the present year.

Note 2:       The R&D activities will need to be conducted during the income year the R&D entity is registered for those activities (see sections 27A and 27J of the Industry Research and Development Act 1986 ).

Note 3:       The entity may also be able to deduct expenditure incurred to an associate in an earlier income year (see section 355-480).

Note 4:       Expenditure incurred in income years starting on or after 1 July 2011 may be deductible for activities registered for income years starting before 1 July 2011 (see section 355-200 of the Income Tax (Transitional Provisions) Act 1997 ).

             (2)  This section has effect subject to section 355- 225 (excluded expenditure), Subdivision 355-F (integrity rules) and subsection 355-580(3) (CRC contributions).



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback