Document ID: chunk:federal_register_of_legislation:C2014C00703:clause:1_2:p6
Version: federal_register_of_legislation:C2014C00703
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 6/11)
Character Range: 44236–46988

in this section is met if the entity receives or becomes entitled to receive the *recoupment from:
 (a) an *Australian government agency; or
 (b) an STB (within the meaning of Division 1AB of Part III of the Income Tax Assessment Act 1936);
otherwise than under the *CRC program.

355‑445  Recoupment could relate to R&D activities
  The condition in this section is met if:
 (a) the *recoupment is received, or the entitlement to receive the recoupment arises, during an income year (the trigger year); and
 (b) 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 (b) includes expenditure incurred in purchasing a tangible depreciating asset to be used when conducting R&D activities.

355‑450  Amount on which extra income tax is payable

Amount on which extra income tax is payable
 (1) The extra income tax is payable for the trigger year on an amount (the R&D expenditure) equal to the sum of:
 (a) so much of the expenditure referred to in section 355‑445 that is deducted under this Division; and
 (b) for each asset (if any) for which expenditure referred to in section 355‑445 is included in the asset's *cost—each amount (if any) equal to the asset's decline in value that is deducted under this Division;
in working out *tax offsets under section 355‑100 obtained by the entity (the recipient), or an entity mentioned in subsection (4), for one or more income years.
Note 1: Section 12B or 31 of the Income Tax Rates Act 1986 sets the rate at which the entity must pay extra income tax on this amount.
Note 2: Paragraphs (a) and (b) of this subsection refer to amounts notionally deducted under this Division (see section 355‑105).

Amount is reduced by any repayments of the recoupment
 (2) For the purposes of subsection (1), reduce the expenditure referred to in subparagraph 355‑445(b)(i) by any repayments of the *recoupment during an income year.

Cap on extra income tax if recoupment relates to a project
 (3) Despite subsection (1), if the *recoupment is covered by subparagraph 355‑445(b)(ii), the amount of extra income tax payable for the trigger year on the recoupment cannot exceed the following amount:
where:
net amount of the recoupment means the total amount of the *recoupment, less any repayments of the recoupment during an income year.

Related entities
 (4) The other entities for the purposes of subsection (1) are as follows:
 (a) an entity *connected with the recipient;
 (b) an *affiliate of the recipient or an entity of which the recipient is an affiliate.

Subdivision 355‑H—Feedstock adjustments

Table of sections