Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 355.410

Disposal of R&D results

             (1)  This section applies to an * R&D entity if:

                     (a)  the R&D entity is entitled under section 355-100 to a * tax offset because it can:

                              (i)  deduct under section 355- 205 or 355-480 expenditure incurred on * R&D activities; or

                             (ii)  deduct under section 355- 305 or 355-520 an amount for an asset (the R&D asset ) used for the purpose of conducting one or more R&D activities; and

                     (b)  the R&D entity receives or becomes entitled to receive one or more of the following amounts (the results amounts ) in an income year (the results year ):

                              (i)  an amount for the results of any of the R&D activities;

                             (ii)  an amount from granting access to, or the right to use, any of those results;

                            (iii)  an amount attributable to the R&D entity having incurred the expenditure, including an amount it is entitled to receive regardless of the results of the R&D activities;

                            (iv)  an amount attributable to the R&D asset being used for the purpose mentioned in subparagraph (a)(ii), including an amount the R&D entity is entitled to receive regardless of the results of the R&D activities;

                             (v)  an amount from * disposing of a * CGT asset, or from granting a right to occupy or use a CGT asset, where the disposal or grant resulted in another person acquiring a right to access or use any of those results.

Note:          This section also applies with changes to the partners of an R&D partnership (see section 355-535).

             (2)  For each results amount, the following amount is included in the * R&D entity's assessable income for the results year:

                     (a)  if the results amount is only a results amount because of subparagraph (1)(b)(v), and the asset referred to in that subparagraph is a * depreciating asset--an amount equal to the extent (if any) that the results amount exceeds the asset's * cost just before the disposal or grant;

                     (b)  if the results amount is only a results amount because of subparagraph (1)(b)(v), and the asset referred to in that subparagraph is not a depreciating asset--an amount equal to the extent (if any) that the results amount exceeds the asset's * cost base just before the disposal or grant;

                     (c)  otherwise--the results amount.

             (3)  For the purposes of paragraph (2)(a), assume that subsection 40-45(2) did not, except in the case of buildings and extensions, alterations and improvements to buildings, prevent Division 40 from applying to certain capital works.



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