Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:11_73rb:p2
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 11 cl 73RB (pt 2/3)
Character Range: 307709–310421

of the Y‑1, Y‑2 and Y‑3 years of income, work out what would have been the amount of the eligible company's initial clawback amount (if any) under section 73C attributable to the notional expenditure on foreign owned R&D by the eligible company in its group membership period for the year of income if subsection 73B(2BA) had not been enacted.
                  Note: This requires counting of grants and recoupments described in section 73C relating to expenditure on projects involving activities that would have been research and development activities had they been carried on in accordance with a plan described in subsection 73B(2BA) (whether or not they were carried on in that way).
           Step 6. For each of the Y‑1, Y‑2 and Y‑3 years of income, reduce (but not below zero) the result of step 4 for the year of income by the result of step 5 for the year of income. The result is the reduced notional expenditure on foreign owned R&D by the eligible company in its group membership period for the year of income.
           Step 7. Add up:

                (a) the reduced notional expenditure on foreign owned R&D by the eligible company in its group membership period for the Y‑1 year of income; and
                (b) the reduced notional expenditure on foreign owned R&D by the eligible company in its group membership period for the Y‑2 year of income; and
                (c) the reduced notional expenditure on foreign owned R&D by the eligible company in its group membership period for the Y‑3 year of income.

           Step 8. Divide the result of step 7 by 3.
           Step 9. Subtract the result of step 8 from the reduced expenditure on foreign owned R&D by the eligible company for the Y0 year of income (see step 3). The result is the change in expenditure on foreign owned R&D by the eligible company.
                  Note: The change in expenditure on foreign owned R&D by the eligible company may be a positive or negative number or zero.
           Step 10. The increase in expenditure on foreign owned R&D by the eligible company is:

                (a) the change in expenditure on foreign owned R&D by the eligible company; or
                (b) zero, if the change in expenditure on foreign owned R&D by the eligible company is a negative number.
 (2) For the purposes of section 73QB, work out the total increase in expenditure on foreign owned R&D by the eligible companies in the group as follows:

      Method statement
           Step 1. For each group member that is an eligible company, work out the increase in expenditure on foreign owned R&D by the eligible company under subsection (1) of this section.
           Step 2. Total the results of step 1.