Document ID: chunk:federal_register_of_legislation:C2014C00703:clause:1_2:p3
Version: federal_register_of_legislation:C2014C00703
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 3/6)
Character Range: 21622–24391

described in subsection 355‑35(2))—the R&D activity is conducted:
 (i) for the body corporate; but
 (ii) not for the purposes of that permanent establishment;
  and the conditions in section 355‑215 (activities conducted for a body corporate by its permanent establishment) are met for the R&D activity;
 (c) the R&D activity is conducted for one or more foreign residents who are each:
 (i) incorporated under a *foreign law; and
 (ii) a resident of a foreign country for the purposes of an agreement of a kind described in subsection 355‑35(2);
  and the conditions in section 355‑220 (activities conducted for a foreign entity) are met for the R&D activity;
 (d) the R&D activity is:
 (i) conducted for the R&D entity solely outside Australia and the external Territories; and
 (ii) covered by a finding in force under paragraph 28C(1)(a) of the Industry Research and Development Act 1986;
 (e) the R&D activity consists of several parts, with:
 (i) some parts being conducted for the R&D entity solely within Australia or an external Territory; and
 (ii) the other parts being conducted for the R&D entity outside Australia and the external Territories while covered by a finding in force under paragraph 28C(1)(a) of the Industry Research and Development Act 1986.
Note: An activity can be covered by a finding under paragraph 28C(1)(a) of the Industry Research and Development Act 1986 if the activity cannot be conducted in Australia or the external Territories.
 (2) However, an *R&D activity is not an activity to which this section applies if the activity is conducted, to a significant extent, for one or more other entities not covered by any paragraph of subsection (1).
Note: An entity would not be covered by, for example, paragraph (1)(c) if the conditions in section 355‑220 were not met for the R&D activity in relation to that entity.

355‑215  R&D activities conducted by a permanent establishment for other parts of the body corporate
  For the purposes of paragraph 355‑210(1)(b), the conditions for an *R&D activity are as follows:
 (a) the R&D activity is conducted solely within Australia or an external Territory;
 (b) if the R&D activity is a *supporting R&D activity, each corresponding *core R&D activity must be:
 (i) an activity conducted, or to be conducted, solely within Australia or an external Territory; and
 (ii) an activity for which the *R&D entity is or has been registered under section 27A of the Industry Research and Development Act 1986, or could be registered for an income year if that core R&D activity were conducted during the income year;
 (c) there is written evidence that the R&D activity is conducted for the body corporate but not for the purposes of that permanent establishment.
Note: The body corporate is the