Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:11_73rb:p1
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 11 cl 73RB (pt 1/3)
Character Range: 305247–307936

73RB  Increases in expenditure on foreign owned R&D by eligible companies

 (1) For the purposes of section 73QB, work out the increase in expenditure on foreign owned R&D by the eligible company as follows:

      Method statement
           Step 1. For the Y0 year of income, work out the amount of the expenditure on foreign owned R&D by the eligible company for the year of income (see subsections 73B(14C) and (14D)) that was incurred by the company in its group membership period. The result is the expenditure on foreign owned R&D by the eligible company in its group membership period for the year of income.
           Step 2. For the Y0 year of income, work out how much (if any) of the initial clawback amount (if any) under section 73C relating to expenditure incurred by the eligible company is attributable to the expenditure on foreign owned R&D by the eligible company in its group membership period for the year of income.
           Step 3. Reduce (but not below zero) the result of step 1 for the year of income by the result of step 2 for the year of income. The result is the reduced expenditure on foreign owned R&D by the eligible company in its group membership period for the Y0 year of income.
           Step 4. For each of the Y‑1, Y‑2 and Y‑3 years of income, work out the amount (the notional expenditure on foreign owned R&D by the eligible company in its group membership period for the year of income) of expenditure that:

                (a) was incurred by the company in its group membership period; and
                (b) would have been expenditure on foreign owned R&D by the eligible company for the year of income (see subsections 73B(14C) and (14D)) if subsection 73B(2BA) had not been enacted.

                  Note 1: This requires counting of expenditure relating to all activities that would have been research and development activities had they been carried on in accordance with a plan described in subsection 73B(2BA) (whether or not they were carried on in that way).
                  Note 2: If all relevant activities were carried on in accordance with such a plan, and the eligible company's group membership period includes the whole of the year of income, the notional expenditure on foreign owned R&D by the eligible company in its group membership period for the year of income is the same as the expenditure on foreign owned R&D by the company for the year of income.
           Step 5. For each of the Y‑1, Y‑2 and Y‑3 years of income, work out what would have been the amount of the eligible company's initial clawback amount (if any) under section 73C attributable to the notional expenditure on foreign owned R&D by the