Document ID: chunk:federal_register_of_legislation:C2014C00703:clause:1_2:p1
Version: federal_register_of_legislation:C2014C00703
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/6)
Character Range: 16603–19303

2                                             Expenditure that the *R&D entity can deduct under section 355‑580 (CRC contributions) for the income year

355‑105  Deductions under this Division are notional only
  An amount (the notional amount) that an *R&D entity can deduct under this Division is disregarded except for the purposes of:
 (a) working out whether the R&D entity is entitled under section 355‑100 to a *tax offset; and
 (b) a provision (of this Act or any other Act) that refers to an entitlement of the R&D entity under section 355‑100 to a tax offset; and
 (c) a provision (of this Act or any other Act) that:
 (i) prevents some or all of the notional amount from being deducted; or
 (ii) changes the income year for which some or all of the notional amount can be deducted; and
Note: Examples are Divisions 26 and 27 of this Act, Subdivision H of Division 3 of Part III of the Income Tax Assessment Act 1936 and Part IVA of that Act.
 (d) a provision (of this Act or any other Act) that includes an amount in assessable income wholly or partly because of the notional amount; and
Note: An example is Subdivision 20‑A, which may include in assessable income a recoupment of a loss or outgoing if the entity can deduct an amount for the loss or outgoing.
 (e) a provision (of this Act or any other Act) that excludes expenditure from:
 (i) the *cost base or *reduced cost base of a *CGT asset; or
 (ii) an element of that cost base or reduced cost base.
Note: An example is section 110‑45, which may exclude deductible expenditure from elements of the cost base of an asset.

355‑110  Notional deductions include prepaid expenditure
  For the purposes of this Division, if:
 (a) apart from Subdivision H (prepaid expenditure) of Division 3 of Part III of the Income Tax Assessment Act 1936, an *R&D entity can deduct an amount under section 355‑205 or 355‑480 for an income year (the present year) or an earlier income year; and
 (b) that Subdivision applies to the calculation of that amount; and
 (c) the entity can deduct an amount, as a result of that application of that Subdivision, for the present year;
the entity is taken to be able to deduct under section 355‑205 or 355‑480 (as appropriate) the amount referred to in paragraph (c) for the present year.
Note: Section 355‑205 is about deductions for R&D expenditure. Section 355‑480 is about deductions for earlier year associate R&D expenditure.

Subdivision 355‑D—Notional deductions for R&D expenditure

Table of sections
355‑200 What this Subdivision is about
355‑205 When notional deductions for R&D expenditure arise
355‑210 Conditions for R&D activities
355‑215 R&D activities conducted by a permanent establishment