Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 16/18)
Character Range: 5219941–5222879

and subsection 355‑580(3) (CRC contributions).

Subdivision 355‑J—Application to R&D partnerships

Table of sections
355‑500 What this Subdivision is about
355‑505 Meaning of R&D partnership and partner's proportion
355‑510 R&D partnership expenditure on R&D activities
355‑515 R&D activities conducted by or for an R&D partnership
355‑520 When notional deductions arise for decline in value of depreciating assets of R&D partnerships
355‑525 Balancing adjustments for R&D partnership assets only used for R&D activities
355‑530 Implications for partner's aggregated turnover
355‑535 Disposal of R&D results—assets of R&D partnerships
355‑540 Application of recoupment rules
355‑545 Relevance for net income, and losses, of the R&D partnership

355‑500  What this Subdivision is about

      This Subdivision modifies the rules in this Division for partners of R&D partnerships.
      In particular, the rules about deducting R&D expenditure are modified to allow a partner to deduct the partner's proportion of the R&D partnership's expenditure on R&D activities.
      A partner of an R&D partnership may also be able to deduct under this Subdivision the decline in value of partnership assets used for R&D activities.

355‑505  Meaning of R&D partnership and partner's proportion
 (1) A partnership is an R&D partnership at a particular time if, at that time, each of the partners is an *R&D entity.
 (2) For an amount attributable to an *R&D partnership for an income year, each partner of the R&D partnership is taken to bear or be entitled to (as appropriate) this proportion (the partner's proportion) of the amount:
 (a) the proportion the partners agreed the partner should bear or be entitled to (as appropriate); or
 (b) if there is no such agreement—the proportion of the partner's interest in the *net income or *partnership loss of the R&D partnership for the income year.

355‑510  R&D partnership expenditure on R&D activities
  If an *R&D partnership incurs expenditure on one or more R&D activities during an income year, this Division applies in relation to each *R&D entity that is a partner of the R&D partnership at some time during the income year as if:
 (a) the partner incurred the partner's proportion of that expenditure when the R&D partnership incurred that expenditure; and
 (b) neither the R&D partnership, nor any other partner of the R&D partnership, incurred expenditure during the income year on the R&D activities; and
 (c) such other changes were made to this Division as are appropriate having regard to that partner's proportion of amounts attributable to the R&D partnership.
Note: This section and section 355‑515 may result in:
(a) the partner being able to deduct the partner's proportion of the partnership expenditure under section 355‑205 (R&D expenditure) or 355‑480 (earlier year associate R&D expenditure) for the R&D activities; and
(b) the partner being affected by the integrity rules