Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.210

  (1)   An * R&D activity covered by one or more of the following paragraphs is an activity to which this section applies:

  (a)   the R&D activity is conducted for the * R&D entity solely within Australia;

  (b)   if the R&D entity is a body corporate carrying on business through a permanent establishment (as described in subsection   355 - 35(2))--the R&D activity is conducted:

  (i)   for the body corporate; but

  (ii)   not for the purposes of that permanent establishment;

    and the conditions in section   355 - 215 (activities conducted for a body corporate by its permanent establishment) are met for the R&D activity;

  (c)   the R&D activity is conducted for one or more foreign residents who are each:

  (i)   incorporated under a * foreign law; and

  (ii)   a resident of a foreign country for the purposes of an agreement of a kind described in subsection   355 - 35(2);

    and the conditions in section   355 - 220 (activities conducted for a foreign entity) are met for the R&D activity;

  (d)   the R&D activity is:

  (i)   conducted for the R&D entity solely outside Australia; and

  (ii)   covered by a finding in force under paragraph   28C(1)(a) of the Industry Research and Development Act 1986 ;

  (e)   the R&D activity consists of several parts, with:

  (i)   some parts being conducted for the R&D entity solely within Australia; and

  (ii)   the other parts being conducted for the R&D entity outside Australia while covered by a finding in force under paragraph   28C(1)(a) of the Industry Research and Development Act 1986 .

Note:   An activity can be covered by a finding under paragraph   28C(1)(a) of the Industry Research and Development Act 1986 if the activity cannot be conducted in Australia.

  (2)   However, an * R&D activity is not an activity to which this section applies if the activity is conducted, to a significant extent, for one or more other entities not covered by any paragraph of subsection   (1).

Note:   An entity would not be covered by, for example, paragraph   (1)(c) if the conditions in section   355 - 220 were not met for the R&D activity in relation to that entity.