Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.540

  (1)   If:

  (a)   an * R&D partnership incurs expenditure (the partnership expenditure ) on * R&D activities; and

  (b)   an * R&D entity (the partner ) is entitled under section   355 - 100 to a * tax offset because it can, under section   355 - 205 or 355 - 480, deduct some or all of that expenditure; and

  (c)   the R&D partnership receives an amount as a * recoupment of any or all of the partnership expenditure;

the partner is taken, for the purposes of Subdivisions   20 - A and 355 - G:

  (d)   to have incurred the partner's proportion of the partnership expenditure when the R&D partnership incurred that expenditure; and

  (e)   to have received the partner's proportion of the recoupment when the R&D partnership received the recoupment.

  (2)   If:

  (a)   an * R&D entity (the partner ) is entitled under section   355 - 100 to a * tax offset because it can, under section   355 - 520, deduct an amount for an income year for an asset; and

  (b)   the applicable * R&D partnership receives an amount as a * recoupment of any or all of the R&D partnership's expenditure included in the * cost of the asset for the purposes of the application of Division   40 as described in paragraph   355 - 520(1)(d);

the partner is taken, for the purposes of Subdivisions   20 - A and 355 - G:

  (c)   to have incurred the partner's proportion of that expenditure when the R&D partnership incurred that expenditure; and

  (d)   to have received the partner's proportion of the recoupment when the R&D partnership received the recoupment.