Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) CMPTI expenditure , of a company for an income year, is expenditure the company incurs during the income year to the extent that:
(a) the expenditure is incurred in carrying on one or more of the company's * registered CMPTI processing activities for the income year at facilities specified in the certificates of registration for those activities; and
(b) the expenditure is paid during the income year, if at the time the expenditure is incurred:
(i) the company, and the entity to which the expenditure is incurred, are not dealing with each other at * arm's length; or
(ii) the entity to which the expenditure is incurred is the company's * associate.
Excluded expenditure
(2) Despite subsection (1), CMPTI expenditure does not include any expenditure the company incurs to the extent that the expenditure:
(a) is capital, or is of a capital nature; or
(b) is taken into account when calculating the decline in value of an asset for the purposes of a * taxation law; or
(c) is incurred by way of, or in relation to, the financing of * registered CMPTI processing activities; or
(d) is on feedstock, whether raw materials (such as ores or mineral concentrates) or intermediate outputs from a previous processing step; or
(e) would result in more than 10% of the company's CMPTI expenditure for the income year being incurred on or in relation to * intellectual property; or
(f) is of a kind prescribed by the regulations.
Note: Similarly, subsection (1) means CMPTI expenditure does not include expenditure to the extent that the expenditure is incurred in carrying on:
(a) a registered CMPTI processing activity at a facility not specified in the certificate of registration for the activity; or
(b) an activity that is not a registered CMPTI processing activity.
(3) Despite subsection (1), if carrying on one or more of the company's * registered CMPTI processing activities results in an output that:
(a) would, if the output were the only output of the activities, mean the activities are not * CMPTI processing activities; and
(b) is disposed of, or is used to produce another output that is disposed of, in a way that:
(i) is for value; or
(ii) involves the company and another entity not dealing with each other at * arm's length; or
(iii) is to an * associate of the company;
CMPTI expenditure does not include so much of the company's expenditure incurred in carrying on those activities as is reasonably attributable to the first - mentioned output.