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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 104.235

CGT event K7: asset used for old law R&D activities

Section applies if asset used for old law R&D activities

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

                     (a)  a balancing adjustment event happens in an income year commencing on or after 1 July 2011 for an asset held by the R&D entity; and

                     (b)  at some time when the R&D entity held the asset, it used the asset for the purpose of the carrying on by or on its behalf of research and development activities (within the meaning of former section 73B of the Income Tax Assessment Act 1936 ).

Changed application of sections 104-235 and 104-240

             (2)  Sections 104-235 and 104-240 of the Income Tax Assessment Act 1997 (the new Act ) apply to the R&D entity for the event as if:

                     (a)  a reference in those sections to the purpose of conducting R&D activities for which you were registered under section 27A of the Industry Research and Development Act 1986 ;

included:

                     (b)  a reference to the purpose described in paragraph (1)(b) of this section.

Normal rules do not apply for the asset and the event

             (3)  Neither of the following sections:

                     (a)  sections 104-235 and 104-240 of the new Act (as amended by the Tax Laws Amendment (Research and Development) Act 2011 );

                     (b)  sections 104-235 and 104-240 of the new Act (as those sections apply because of Part 2 of Schedule 4 to the Tax Laws Amendment (Research and Development) Act 2011 );

to the extent that they would otherwise apply apart from this section to the R&D entity for the event, do so apply to the R&D entity for the event.

Note 1:       The sections described in paragraph (a) would otherwise apply for the event in a case where the R&D entity had used the asset for the purpose of conducting R&D activities for which it was registered under section 27A of the Industry Research and Development Act 1986 .

Note 2:       The sections described in paragraph (b) would otherwise apply in respect of the purpose described in paragraph (1)(b) of this section.

Table of Subdivisions

108-A   What a CGT asset is

108-B    Collectables

108-D   Separate CGT assets

Table of sections

108-5        CGT assets



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