Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.715

  (1)   If an * R&D entity is entitled under section   355 - 100 to a * tax offset for an income year for expenditure it can deduct under section   355 - 205, 355 - 480 or 355 - 580, that expenditure:

  (a)   cannot be taken into account by any entity in working out a deduction under any other Division of this Act for any income year; and

  (b)   cannot be taken into account by any entity in working out a tax offset under any other Division of this Act for any income year.

Note:   Section   355 - 205 is about R&D expenditure, section   355 - 480 is about earlier year associate R&D expenditure, and section   355 - 580 is about CRC contributions.

  (2)   If an * R&D entity is entitled under section   355 - 100 to a * tax offset for an income year for a deduction under section   355 - 305 or 355 - 520 of an amount equal to the decline in value of an asset, that decline in value:

  (a)   cannot be taken into account by any entity in working out a deduction under any other Division of this Act (other than section   40 - 292 or 40 - 293) for any income year; and

  (b)   cannot be taken into account by any entity in working out a tax offset under any other Division of this Act for any income year;

to the extent that the decline in value is attributable to the use of the asset for the purpose of conducting one or more of the * R&D activities to which the deduction relates.

Note 1:   A deduction may be available under section   40 - 25 to the extent that the asset's decline in value is attributable to another purpose. If so, that deduction under section   40 - 25 will not take into account the asset's decline in value to the extent that it is attributable to the R&D activities (see also subsection   40 - 25(2)).

Note 2:   Section   355 - 305 is about the decline in value of R&D assets and section   355 - 520 is about the decline in value of R&D partnership assets.

Note 3:   Sections   40 - 292 and 40 - 293 deal with balancing adjustments when deductions have been available for the asset's decline in value both under this Division and section   40 - 25.

Table of Subdivisions

360 - A   Tax incentives for early stage investors in innovation companies