Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.448

  (1)   The * R&D entity (the partner ) has an amount under this section if:

  (a)   the partner is a partner in an * R&D partnership; and

  (b)   a * balancing adjustment event happens in the present year for an asset * held by the R&D partnership; and

  (c)   the R&D partnership cannot deduct, for the asset for an income year, an amount under section   40 - 25, as that section applies apart from:

  (i)   this Division; and

  (ii)   former section   73BC of the Income Tax Assessment Act 1936 ; and

  (d)   the partner is entitled under section   355 - 100 to * tax offsets for one or more income years for deductions under section   355 - 520 for the asset; and

  (e)   the partner is registered under section   27A of the Industry Research and Development Act 1986 for one or more * R&D activities for the present year; and

  (f)   an amount (the section   40 - 285 amount ) would, as mentioned in subsection   355 - 525(3), be included in the R&D partnership's assessable income for the present year for the asset and the balancing adjustment event.

Note 1:   This section applies in a modified way if the partner has deductions for the asset under former section   73BA or 73BH of the Income Tax Assessment Act 1936 (see section   355 - 325 of the Income Tax (Transitional Provisions) Act 1997 ).

Note 2:   Section   40 - 293 applies if the R&D partnership can deduct an amount under section   40 - 25, as that section applies apart from this Division and former section   73BC of the Income Tax Assessment Act 1936 .

  (2)   The amount is the partner's proportion of the amount that is so much of an amount equal to the section   40 - 285 amount as does not exceed the difference between:

  (a)   the asset's * cost; and

  (b)   the asset's * adjustable value, worked out under Division   40 as if that Division applied with the changes described in section   355 - 310.