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INCOME TAX ASSESSMENT ACT 1997 - SECT 355.305

When notional deductions for decline in value arise

             (1)  If:

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

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

                     (c)  the R&D entity 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

                     (d)  the R&D entity 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 R&D entity can deduct the amount referred to in paragraph (c) for the present year.

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



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