Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p63
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 63/64)
Character Range: 553945–556714

355‑200 Registration for activities before 2011‑12 income year

355‑200  Registration for activities before 2011‑12 income year
  A reference in each of the following provisions of the Income Tax Assessment Act 1997 to a registration under section 27A of the Industry Research and Development Act 1986 includes a reference to a registration under former section 39J of that Act:
 (a) paragraph 43‑35(a);
 (b) subparagraph 355‑205(1)(a)(i);
 (c) subparagraph 355‑215(b)(ii);
 (d) subparagraph 355‑220(1)(b)(ii);
 (e) subparagraph 355‑480(1)(a)(i);
 (f) paragraph 355‑580(1)(b).

Subdivision 355‑E—Balancing adjustments for decline in value deductions for assets used in R&D activities

Table of sections
355‑320 Balancing adjustment—assets only used for R&D activities
355‑325 Balancing adjustment—R&D partnership assets only used for R&D activities
355‑340 Balancing adjustment—tax exempt entities that become taxable

355‑320  Balancing adjustment—assets only used for R&D activities

R&D entity has old law R&D decline in value deductions
 (1) This section applies to an R&D entity 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 the R&D entity; and
 (b) the R&D entity cannot deduct an amount under section 40‑25 of the Income Tax Assessment Act 1997 (the new Act), as that section applies apart from:
 (i) Division 355 of that 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 R&D entity 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 R&D entity 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 R&D entity 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 entity 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 entity'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 R&D entity is entitled under section 355‑100 of the new Act to tax offsets for one or more income years for deductions under section 355‑305 of that Act for the asset.
Note