Document ID: chunk:federal_register_of_legislation:C2024C00267:section:2:p2
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 2 (pt 2/3)
Character Range: 560243–562745

(4) of this section—a clawback amount under section 355‑446 of the new Act for the income year equal to the amount mentioned in subsection (4B) of this section; or
 (b) if the R&D entity is taken to be able to deduct an amount as mentioned in subsection (3) of this section—a catch up amount under section 355‑465 of the new Act for the income year equal to the amount of that deduction.
 (4B) The amount is the following:

where:
adjusted section 40‑285 amount means so much of the section 40‑285 amount as does not exceed the total decline in value.
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) of this section.

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 entity had new law deductions.
Note 2: Former section 73BF of the old Act would otherwise apply for the event in respect of the old law deductions.

355‑325  Balancing adjustment—R&D partnership assets only used for R&D activities

Partner has old law R&D decline in value deductions
 (1) This section applies to an R&D entity (the partner) 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 an R&D partnership; and
 (b) the R&D partnership cannot deduct an amount under section 40‑25, as that section applies apart from:
 (i) Division 355 of the Income Tax Assessment Act 1997 (the new 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 partner 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 partner 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