Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.410

  (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.