Document ID: chunk:federal_register_of_legislation:C2014C00703:clause:1_2:p9
Version: federal_register_of_legislation:C2014C00703
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 9/11)
Character Range: 51870–54792

(2)(a) ceases to the extent that subsection (2) applies to the expenditure.
Example: If, by the time mentioned in paragraph (2)(b), an R&D entity chose to deduct only a third of the expenditure it could have deducted under another Division, then the remaining 2 thirds of that expenditure:
(a) can be deducted under this section; but
(b) can no longer be deducted under the other Division.

Notional deduction is subject to integrity rules etc.
 (4) This section has effect subject to section 355‑225 (excluded expenditure), Subdivision 355‑F (integrity rules) 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