Document ID: chunk:federal_register_of_legislation:C2010C00673:body:0:p58
Version: federal_register_of_legislation:C2010C00673
Segment Type: other
Provision Reference: 
Character Range: 144246–147282

13. Subsection 73B(1) (definition of "research and
development activities"):
Omit the definition, substitute:
  "'research and development activities' means:
  (a) systematic, investigative or experimental activities that
involve innovation or technical risk and are carried on for the
purpose of:
    (i) acquiring new knowledge (whether or not that knowledge
will have a specific practical application); or
    (ii) creating new or improved materials, products, devices,
processes or services; or
  (b) other activities that are carried on for a purpose
directly related to the carrying on of activities of the kind
referred to in paragraph (a);".
  14. Subsection 73B(14):
Omit "the deduction acceleration factor in relation to the
company in relation to the year of income", substitute "1.5".
  15. Paragraph 73B(15)(a):
Omit "the deduction acceleration factor in relation to the
company in relation to the year of income", substitute "1.5".
  16. After subsection 73B(17):
Insert:
  "(17A) An amount is not allowable as a deduction under
subsection (12), (13), (14), (15) or (17) from a company's
assessable income of a year of income in respect of expenditure
on overseas research and development activities unless the
expenditure is certified expenditure.".
  17. Subparagraph 73B(23)(e)(i):
Omit "the deduction acceleration factor in relation to the
company in relation to the year of income", substitute "1.5".
  18. Paragraph 73B(24)(e):
Omit "the deduction acceleration factor in relation to the
company in relation to the year of income", substitute "1.5".
  19. After subsection 73B(34):
Insert:
  "(34A) If the Board gives to the Commissioner a certificate
stating whether particular activities that have been or are
being carried on by or on behalf of an eligible company in
respect of a project are the overseas research and development
activities described in the provisional certificate given by
the Board to the company under section 39ED of the Industry
Research and Development Act 1986, the certificate is binding
on the Commissioner for the purpose of making an assessment of
the company's taxable income of any year of income in which any
research and development activities included in the project
were carried on.".
  20. Subsection 73C(9):
Omit the subsection, substitute:
  "(9) If clawback applies to expenditure (other than
contracted expenditure) incurred on or after 21 November 1987,
subsection 73B(14) and paragraph 73B(15)(a) have effect as if
'multiplied by 1.5' were omitted from that subsection and that
paragraph.".
  21. Subsection 124ZF(1) (definition of "research and
development activities"):
Omit subparagraph (a)(ii), substitute:
    "(ii) would be research and development activities for the
purposes of that section if subsection (2A) of that section
were amended so that references in that subsection to an
eligible company included references to a person other than an
eligible company; and".
  22. Application
The amendments made by this Part apply to deductions claimed
for the 1994-95