Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 8/18)
Character Range: 5200404–5202987

the R&D entity to the R&D entity's own use, other than use for the purpose of transforming that product for supply.
 (5) This section applies to a *supply or use of the marketable product by:
 (a) an entity *connected with the *R&D entity; or
 (b) an *affiliate of the R&D entity or an entity of which the R&D entity is an affiliate;
as if it were by the R&D entity.

355‑446  Balancing adjustments for assets only used for R&D activities
 (1) The *R&D entity has an amount under this section if:
 (a) a *balancing adjustment event happens in the present year for an asset *held by the R&D entity; and
 (b) the R&D entity cannot deduct, for the asset for an income year, an amount under section 40‑25 as that section applies apart from:
 (i) this Division; and
 (ii) former section 73BC of the Income Tax Assessment Act 1936; and
 (c) the R&D entity is entitled under section 355‑100 to *tax offsets for one or more income years for deductions under section 355‑305 for the asset; and
 (d) the R&D entity is registered under section 27A of the Industry Research and Development Act 1986 for one or more *R&D activities for the present year; and
 (e) an amount (the section 40‑285 amount) is included in the R&D entity's assessable income for the present year under subsection 355‑315(3) for the asset and the balancing adjustment event.
Note 1: This section applies in a modified way if the entity also has deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 355‑320 of the Income Tax (Transitional Provisions) Act 1997).
Note 2: Section 40‑292 applies if the entity can deduct an amount under section 40‑25, as that section applies apart from this Division and former section 73BC of the Income Tax Assessment Act 1936.
 (2) The amount is so much of an amount equal to the section 40‑285 amount as does not exceed the difference between:
 (a) the asset's *cost; and
 (b) the asset's *adjustable value, worked out under Division 40 as if that Division applied with the changes described in section 355‑310.

355‑447  Balancing adjustments for assets partially used for R&D activities
 (1) The *R&D entity has an amount under this section if:
 (a) a *balancing adjustment event happens in the present year for an asset *held by the R&D entity and for which:
 (i) the R&D entity can deduct, for an income year, an amount under section 40‑25, as that section applies apart from Division 355 and former section 73BC of the Income Tax Assessment Act 1936; or
 (ii) the R&D entity could have deducted, for an income year, an amount