Document ID: chunk:federal_register_of_legislation:C2021C00098:clause:1_6
Version: federal_register_of_legislation:C2021C00098
Segment Type: clause
Provision Reference: sch 1 cl 6
Character Range: 5893–7439

6  At the end of Subdivision 355‑W
Add:

355‑720  Certain related amounts may be reduced if notional deductions exceeded $100 million
 (1) The object of this section is to prevent the portion of a *tax offset worked out using the *corporate tax rate being clawed back in later income years.
Note: This applies when the R&D entity's notional deductions exceed $100 million (see subsection 355‑100(3)).
 (2) For the purposes of working out a matter referred to in column 1 of an item of this table for an income year (the present year), the *R&D entity may choose to reduce the amount referred to in column 3 of that item if:
 (a) subsection 355‑100(3) applied to the R&D entity for an earlier income year or the present year (the excess year); and
 (b) the R&D entity's deductions for the excess year included deductions covered by a provision referred to in column 2 of that item.

Reducing extra income tax or amounts included in assessable income
Item                                                                 Column 1                                                                                                                                                    Column 2                                                  Column 3

                                                                     For the purposes of working out this matter:                                                                                                                If its excess year deductions included those covered by:  This can be reduced: