Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 15/18)
Character Range: 5217361–5220249

the reference to the "total amount" in the definition of adjusted offset were a reference to that amount as so adjusted.

Subdivision 355‑I—Application to earlier income year R&D expenditure incurred to associates

Table of sections
355‑480 Notional deductions for expenditure incurred to associate in earlier income years

355‑480  Notional deductions for expenditure incurred to associate in earlier income years

Notional deductions for earlier year associate expenditure
 (1) An *R&D entity can deduct for an income year (the present year) expenditure it incurred to its *associate during an earlier income year to the extent that:
 (a) the expenditure was incurred on one or more *R&D activities:
 (i) for which the R&D entity is registered under section 27A of the Industry Research and Development Act 1986 for an income year; and
 (ii) that are activities to which section 355‑210 (conditions for R&D activities) applies; and
 (b) the expenditure is paid to that associate during the present year; and
 (c) subsection (2) applies to the expenditure.
Note 1: This section applies in a modified way to R&D partnership expenditure (see sections 355‑510 and 355‑515).
Note 2: Expenditure paid in income years starting on or after 1 July 2011 may be deductible for activities registered for income years starting before 1 July 2011 (see section 355‑200 of the Income Tax (Transitional Provisions) Act 1997).

Expenditure cannot have been otherwise deducted etc.
 (2) This subsection applies to the expenditure if:
 (a) the *R&D entity can deduct the expenditure, or is entitled to a *tax offset for the expenditure, under any other Division of this Act for an earlier income year; and
 (b) by the time of lodging its *income tax return for the most recent income year before the present year, the R&D entity had neither:
 (i) deducted the expenditure; nor
 (ii) obtained a tax offset for the expenditure;
  as described in paragraph (a).
 (3) The entitlement to the deduction, or *tax offset, described in paragraph (2)(a) ceases to the extent that subsection (2) applies to the expenditure.
Example: If, by the time mentioned in paragraph (2)(b), an R&D entity chose to deduct only a third of the expenditure it could have deducted under another Division, then the remaining 2 thirds of that expenditure:
(a) can be deducted under this section; but
(b) can no longer be deducted under the other Division.

Notional deduction is subject to integrity rules etc.
 (4) This section has effect subject to section 355‑225 (excluded expenditure), Subdivision 355‑F (integrity rules) and subsection 355‑580(3) (CRC contributions).

Subdivision 355‑J—Application to R&D partnerships

Table of sections
355‑500 What this Subdivision is about
355‑505 Meaning of R&D partnership and partner's proportion
355‑510 R&D partnership expenditure on R&D activities
355‑515 R&D activities conducted by or