Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.105

  (1)   An amount (the notional amount ) that an * R&D entity can deduct under this Division is disregarded except for the purposes of:

  (a)   working out whether the R&D entity is entitled under section   355 - 100 to a * tax offset; and

  (b)   a provision (of this Act or any other Act) that refers to an entitlement of the R&D entity under section   355 - 100 to a tax offset; and

  (c)   a provision (of this Act or any other Act) that:

  (i)   prevents some or all of the notional amount from being deducted; or

  (ii)   changes the income year for which some or all of the notional amount can be deducted; and

Note:   Examples are Divisions   26 and 27 of this Act, Subdivision H of Division   3 of Part   III of the Income Tax Assessment Act 1936 and Part   IVA of that Act.

  (d)   a provision (of this Act or any other Act) that includes an amount in assessable income wholly or partly because of the notional amount; and

Note:   An example is Subdivision   20 - A, which may include in assessable income a recoupment of a loss or outgoing if the entity can deduct an amount for the loss or outgoing.

  (e)   a provision (of this Act or any other Act) that excludes expenditure from:

  (i)   the * cost base or * reduced cost base of a * CGT asset; or

  (ii)   an element of that cost base or reduced cost base.

Note:   An example is section   110 - 45, which may exclude deductible expenditure from elements of the cost base of an asset.

  (2)   Subsection   (1) does not apply to amounts that the * R&D entity can deduct under the following:

  (a)   subsection   355 - 315(2);

  (b)   subsection   355 - 475(1);

  (c)   subsection   355 - 525(2).