Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 4/18)
Character Range: 5190206–5192934

used for the purpose mentioned in subparagraph (a)(ii), including an amount the R&D entity is entitled to receive regardless of the results of the R&D activities;
 (v) an amount from *disposing of a *CGT asset, or from granting a right to occupy or use a CGT asset, where the disposal or grant resulted in another person acquiring a right to access or use any of those results.
Note: This section also applies with changes to the partners of an R&D partnership (see section 355‑535).
 (2) For each results amount, the following amount is included in the *R&D entity's assessable income for the results year:
 (a) if the results amount is only a results amount because of subparagraph (1)(b)(v), and the asset referred to in that subparagraph is a *depreciating asset—an amount equal to the extent (if any) that the results amount exceeds the asset's *cost just before the disposal or grant;
 (b) if the results amount is only a results amount because of subparagraph (1)(b)(v), and the asset referred to in that subparagraph is not a depreciating asset—an amount equal to the extent (if any) that the results amount exceeds the asset's *cost base just before the disposal or grant;
 (c) otherwise—the results amount.
 (3) For the purposes of paragraph (2)(a), assume that subsection 40‑45(2) did not, except in the case of buildings and extensions, alterations and improvements to buildings, prevent Division 40 from applying to certain capital works.

355‑415  Reducing deductions to reflect mark‑ups within groups
 (1) This section applies to an *R&D entity if:
 (a) the R&D entity can deduct an amount under section 355‑205 or 355‑480 for an income year for one or more *R&D activities; and
 (b) one or more other entities (the grouped entities) incurred expenditure during the income year, or an earlier income year, on one or more of those *R&D activities; and
 (c) when each grouped entity incurred the expenditure:
 (i) the grouped entity was *connected with the R&D entity; or
 (ii) the grouped entity was an *affiliate of the R&D entity or the R&D entity was an affiliate of the grouped entity.
Note: Section 355‑205 is about deductions for R&D expenditure. Section 355‑480 is about deductions for earlier year associate R&D expenditure.

Reducing deductions by group mark‑ups
 (2) The amount the *R&D entity can deduct, apart from this section, under section 355‑205 or 355‑480 for the income year is reduced by the amount (the reduction amount) worked out as follows:

      Method statement
           Step 1. For each grouped entity, work out the sum of the amounts derived during the income year, or an earlier income year, by the grouped entity for goods or services relating to one or more of the *R&D activities