Document ID: chunk:federal_register_of_legislation:C2014C00703:clause:4_2:p2
Version: federal_register_of_legislation:C2014C00703
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 2/3)
Character Range: 210053–212597

from this section to the R&D entity for the event, do so apply to the R&D entity for the event.
Note 1: Section 355‑315 of the new Act would otherwise apply for the event in a case where the R&D entity had new law deductions.
Note 2: Former section 73BF of the old Act would otherwise apply for the event in respect of the old law deductions.

355‑325  Balancing adjustment—R&D partnership assets only used for R&D activities

Partner has old law R&D decline in value deductions
 (1) This section applies to an R&D entity (the partner) if:
 (a) a balancing adjustment event happens in an income year (the event year) commencing on or after 1 July 2011 for an asset held by an R&D partnership; and
 (b) the R&D partnership cannot deduct an amount under section 40‑25, as that section applies apart from:
 (i) Division 355 of the Income Tax Assessment Act 1997 (the new Act); and
 (ii) former section 73BC of the Income Tax Assessment Act 1936 (the old Act);
  for the asset for an income year; and
 (c) either or both of the following subparagraphs apply:
 (i) the partner can deduct (the old law deductions) under former section 73BA or 73BH of the old Act an amount for one or more income years for the asset;
 (ii) the partner chooses tax offsets under former section 73I of the old Act instead of deductions (also the old law deductions) under those former sections for one or more income years for the asset; and
 (d) the partner is registered under section 27A of the Industry Research and Development Act 1986 for one or more R&D activities for the event year; and
 (e) if Division 40 of the new Act applied as described in subsection (2) of this section:
 (i) the R&D partnership could deduct for the event year an amount under subsection 40‑285(2) of that Act for the asset and the balancing adjustment event; or
 (ii) an amount would be included in the R&D partnership's assessable income for the event year under subsection 40‑285(1) of that Act for the asset and the balancing adjustment event.
Note 1: This section applies even if the partner is entitled under section 355‑100 of the new Act to tax offsets for one or more income years for deductions (the new law deductions) under section 355‑520 of that Act for the asset.
Note 2: Section 40‑293 of this Act may apply if paragraph (c), but not paragraph (b), of this subsection is satisfied.

Changed application of Division 40
 (2) For the purposes of paragraph (1)(e), assume that Division 40 of the new Act applied with the changes described in section 355‑310 of that Act, but