Document ID: chunk:federal_register_of_legislation:C2014C00703:clause:4_2:p1
Version: federal_register_of_legislation:C2014C00703
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 1/3)
Character Range: 207329–210247

2                                                     the purpose of conducting one or more of the R&D activities to which the R&D deductions (within the meaning of that section) relate  both:
                                                                                                                                                                                           (a) the purpose of conducting one or more of the research and development activities (within the meaning of former section 73B of the old Act) to which the old law deductions relate; and
                                                                                                                                                                                           (b) the purpose of conducting one or more of the R&D activities to which the new law deductions (if any) relate

Notional deduction
 (3) If the R&D entity could deduct for the event year an amount under subsection 40‑285(2) of the new Act for:
 (a) the asset; and
 (b) the event;
if Division 40 of that Act applied as described in subsection (2) of this section, the R&D entity is taken to be able to deduct under subsection 355‑315(2) of the new Act that amount for the event year.
Note: The R&D entity may be entitled to a tax offset under section 355‑100 (about R&D) of the new Act for the deduction.

Amount to be included in assessable income
 (4) If an amount (the section 40‑285 amount) would be included in the R&D entity's assessable income for the event year under subsection 40‑285(1) of the new Act for the asset and the event if Division 40 of that Act applied as described in subsection (2) of this section, the sum of:
 (a) that amount; and
 (b) the following amount;
is taken to be included in the R&D entity's assessable income for the event year under subsection 355‑315(3) of the new Act:
where:
adjusted section 40‑285 amount means so much of the section 40‑285 amount as does not exceed the total decline in value.
old law 1.25 rate deductions means the sum of the R&D entity's notional Division 40 deductions, and notional Division 42 deductions, (if any) for the asset that were multiplied by 1.25 in working out the old law deductions.
total decline in value means the asset's cost, less its adjustable value, worked out under Division 40 of the new Act as it applies as described in subsection (2).

Normal rules do not apply for the asset and the event
 (5) Neither of the following sections:
 (a) section 355‑315 of the new Act;
 (b) former section 73BF of the old Act (as that section applies because of Part 2 of Schedule 4 to the Tax Laws Amendment (Research and Development) Act 2011);
to the extent that they would otherwise apply apart 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