Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.520

When notional deductions arise

  (1)   If:

  (a)   an * R&D entity is a partner of an * R&D partnership at some time during an income year (the present year ); and

  (b)   the partner is registered under section   27A of the Industry Research and Development Act 1986 for the present year for one or more * R&D activities that are activities to which section   355 - 210 (conditions for R&D activities) applies; and

Note:   Section   355 - 210 applies with changes for this paragraph   (see section   355 - 515).

  (c)   while a tangible * depreciating asset is * held by the R&D partnership during the present year, the asset is used for the purpose of conducting one or more of those R&D activities; and

  (d)   the R&D partnership could deduct an amount under section   40 - 25 for the asset for the present year if Division   40 applied with the changes described in section   355 - 310; and

Note:   Section   355 - 310 applies with changes for this paragraph   (see subsection   (2) of this section).

  (e)   the R&D partnership cannot deduct an amount for the asset for:

  (i)   an earlier income year under Subdivision   328 - D (capital allowances for small business entities); or

  (ii)   an earlier income year under Division   40 (as that Division applies apart from this Division), in a case where section   40 - 440 (low - value pools) applied;

the partner can deduct the partner's proportion of the amount referred to in paragraph   (d) for the present year.

Changed application of Division   40 for this Subdivision

  (2)   For the purposes of this Subdivision, section   355 - 310 applies as if the following changes were made:

Disregard certain assets held because of CRC contributions

  (3)   This section has effect subject to subsection   355 - 580(4) (CRC contributions).