Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection (2), the amount of the digital games tax offset for a company for an income year is the lower of:
(a) 30% of the sum of all the amounts determined by the * Arts Minister under section 378 - 30 that are specified in certificates issued to the company for the income year under section 378 - 25; and
(b) $20,000,000.
(2) If the sum of the amounts of the digital games tax offset for an income year worked out under subsection (1) for:
(a) the company; and
(b) each other company (each of which is a related company ) that is * connected with or is an * affiliate of the company;
is greater than $20,000,000, the amount of the digital games tax offset for the company is:
(c) if the requirements of subsections (3) and (4) are satisfied--the amount specified in the notice given by the company under subsection (3); or
(d) otherwise--nil.
(3) The requirements of this subsection are:
(a) the company gives the Commissioner a notice in the * approved form specifying an amount that is not more than 30% of the sum of all the amounts determined by the * Arts Minister under section 378 - 25 that are specified in certificates issued to the company for the income year under section 378 - 30; and
(b) one or more of the related companies also give the Commissioner a notice in the approved form specifying an amount that is not more than 30% of the sum of all the amounts determined by the Arts Minister under section 378 - 25 that are specified in certificates issued to the related company for the income year under section 378 - 30; and
(c) the sum of all the amounts specified in the notices given by the company and those related companies does not exceed $20,000,000.
Example: Bilby Co is primarily responsible for developing a digital game. Wombat Co, a company connected with Bilby Co, is also primarily responsible for developing a digital game. The amount worked out under subsection (1) is $15,000,000 for the income year for each company. Since the sum of these amounts exceeds $20,000,000, the companies must coordinate with one another to ensure that the amount collectively claimed stays under the $20,000,000 cap. Bilby Co and Wombat Co agree that for the income year, they will each give the Commissioner a notice specifying $10,000,000 in notices. If they both do so, each will receive an offset of $10,000,000 for the income year.
(4) A notice given under subsection (3) by a company in relation to an income year must be given at the same time as the company claims the digital games * tax offset in its * income tax return for the income year.
(5) A company may vary the amount specified in a notice given under subsection (3) in relation to an income year if:
(a) in specifying the amount in the notice:
(i) the company made an inadvertent error in determining whether another company is a related company; and
(ii) as a result the company did not take account of the amount of the digital games tax offset for the other company for the income year; and
(b) the company gives the Commissioner a notice in the * approved form specifying the varied amount.
Otherwise, the notice is irrevocable.