Commonwealth Consolidated Acts

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

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.405

Expenditure not at risk

             (1)  An * R&D entity cannot deduct expenditure under section 355- 205 or 355-480 if:

                     (a)  when it incurs the expenditure, the R&D entity or its * associate had received, or could reasonably be expected to receive, consideration:

                              (i)  as a direct or indirect result of the expenditure being incurred; and

                             (ii)  regardless of the results of the activities on which the expenditure is incurred; and

                     (b)  that consideration is equal to or greater than the expenditure.

Note:          Section 355- 205 is about deductions for R&D expenditure. Section 355-480 is about deductions for earlier year associate R&D expenditure.

             (2)  If:

                     (a)  when an * R&D entity incurs expenditure, the R&D entity or its * associate had received, or could reasonably be expected to receive, consideration:

                              (i)  as a direct or indirect result of the expenditure being incurred; and

                             (ii)  regardless of the results of the activities on which the expenditure is incurred; and

                     (b)  that consideration is less than the expenditure;

the R&D entity cannot deduct under section 355- 205 or 355-480 so much of the expenditure as is equal to the consideration.

             (3)  For the purposes of paragraphs (1)(a) and (2)(a), have regard to:

                     (a)  anything that happened or existed before or at the time the expenditure is incurred; and

                     (b)  anything that is likely to happen or exist after that time.

             (4)  This section does not apply to expenditure incurred on * R&D activities covered by paragraph 355-210(1)(b) or (c).

Note:          Those paragraphs cover R&D activities conducted for foreign residents.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback