Document ID: chunk:federal_register_of_legislation:C2021C00270:clause:5_29:p1
Version: federal_register_of_legislation:C2021C00270
Segment Type: clause
Provision Reference: sch 5 cl 29 (pt 1/10)
Character Range: 63257–66204

29  Subdivisions 355‑G and 355‑H
Repeal the Subdivisions, substitute:

Subdivision 355‑G—Clawback of R&D recoupments, feedstock adjustments and balancing adjustments

Guide to Subdivision 355‑G

355‑430  What this Subdivision is about

      An amount is included in an R&D entity's assessable income if:
             (a) the R&D entity receives a recoupment from government of expenditure on R&D activities for which it has obtained tax offsets under this Division; or
             (b) the R&D entity can deduct under this Division expenditure on goods, materials or energy used during R&D activities to produce marketable products or products applied to the R&D entity's own use; or
             (c) a balancing adjustment event happens for an asset held by the R&D entity (or an R&D partnership in which the R&D entity is a partner) for which tax offsets have been obtained under this Division and for which an amount is otherwise included in the R&D entity's (or R&D partnership's) assessable income.

Table of sections

Operative provisions
355‑435 When this Subdivision applies
355‑440 R&D recoupments
355‑445 Feedstock adjustments
355‑446 Balancing adjustments for assets only used for R&D activities
355‑447 Balancing adjustments for assets partially used for R&D activities
355‑448 Balancing adjustments for R&D partnership assets only used for R&D activities
355‑449 Balancing adjustments for R&D partnership assets partially used for R&D activities
355‑450 Amount to be included in assessable income

Operative provisions

355‑435  When this Subdivision applies
  This Subdivision applies to an *R&D entity for an income year (the present year) if:
 (a) the R&D entity has an amount (a clawback amount) under section 355‑440, 355‑445, 355‑446, 355‑447, 355‑448 or 355‑449 for the present year; and
 (b) the R&D entity has received, or is entitled to receive, a *tax offset under section 355‑100 for one or more income years (each an offset year) in relation to that clawback amount.

355‑440  R&D recoupments
 (1) The *R&D entity has an amount under this section if:
 (a) the entity, or another entity mentioned in subsection (5), receives or becomes entitled to receive a *recoupment from either of the following (otherwise than under the *CRC program):
 (i) an *Australian government agency;
 (ii) an STB (within the meaning of Division 1AB of Part III of the Income Tax Assessment Act 1936); and
 (b) the recoupment is received, or the entitlement to receive the recoupment arises, during the present year; and
 (c) either:
 (i) the recoupment is of expenditure incurred on or in relation to certain activities; or
 (ii) the recoupment requires expenditure (the project expenditure) to have been incurred, or to be incurred, on certain activities.
Note: Paragraph (c) includes expenditure incurred in purchasing a tangible depreciating asset to be used when conducting R&D activities.
 (2) The amount is equal to the sum of:
 (a) so