Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.446

  (1)   The * R&D entity has an amount under this section if:

  (a)   a * balancing adjustment event happens in the present year for an asset * held by the R&D entity; and

  (b)   the R&D entity cannot deduct, for the asset for an income year, an amount under section   40 - 25 as that section applies apart from:

  (i)   this Division; and

  (ii)   former section   73BC of the Income Tax Assessment Act 1936 ; and

  (c)   the R&D entity is entitled under section   355 - 100 to * tax offsets for one or more income years for deductions under section   355 - 305 for the asset; and

  (d)   the R&D entity is registered under section   27A of the Industry Research and Development Act 1986 for one or more * R&D activities for the present year; and

  (e)   an amount (the section   40 - 285 amount ) is included in the R&D entity's assessable income for the present year under subsection   355 - 315(3) for the asset and the balancing adjustment event.

Note 1:   This section applies in a modified way if the entity also has deductions for the asset under former section   73BA or 73BH of the Income Tax Assessment Act 1936 (see section   355 - 320 of the Income Tax (Transitional Provisions) Act 1997 ).

Note 2:   Section   40 - 292 applies if the entity can deduct an amount under section   40 - 25, as that section applies apart from this Division and former section   73BC of the Income Tax Assessment Act 1936 .

  (2)   The amount is so much of an amount equal to the section   40 - 285 amount as does not exceed the difference between:

  (a)   the asset's * cost; and

  (b)   the asset's * adjustable value, worked out under Division   40 as if that Division applied with the changes described in section   355 - 310.