Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 14/18)
Character Range: 5214925–5217637

are entitled under section 355‑100 to *tax offsets for one or more income years for deductions under section 355‑520 for the asset; and
 (d) the R&D partnership can deduct an amount (the section 40‑285 amount) for the asset under section 40‑285 (after applying subsection 40‑293(2)) for the present year.
Note: This section applies in a modified way if the partners have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40‑293 of the Income Tax (Transitional Provisions) Act 1997).
 (2) The amount is the partner's proportion of the amount worked out as follows:
where:
total decline in value means the *cost of the asset less its *adjustable value.
total R&D deductions means the sum of each partner's deductions mentioned in paragraph (1)(c) of this section.

355‑475  Amount that can be deducted
 (1) The *R&D entity can deduct, for the present year, the sum of the following amounts for each offset year relating to the catch up amount:
where:
adjusted offset means the *tax offset the R&D entity would have received under section 355‑100 for the offset year if the total amount mentioned in subsection 355‑100(1) for that tax offset were increased by the portion of the catch up amount that is attributable to the offset year.
deduction amount means the portion of the catch up amount that is attributable to the offset year, multiplied by the R&D entity's *corporate tax rate for the offset year.
starting offset means the amount of the *tax offset the R&D entity has received, or is entitled to receive, under section 355‑100 for the offset year.
Note: A deduction under this subsection is not a notional deduction: see subsection 355‑105(2).
 (2) However, if this section, or section 355‑450, has previously applied (whether in the present year or an earlier income year) in relation to another catch up amount, or clawback amount, the *R&D entity has that relates to the offset year, subsection (1) of this section applies as if:
 (a) the starting offset were the *tax offset the R&D entity would have received under section 355‑100 for the offset year if the total amount mentioned in subsection 355‑100(1) were:
 (i) increased by the sum of the portions of any such other catch up amounts that are attributable to the offset year; and
 (ii) decreased by the sum of the portions of any such other clawback amounts that are attributable to the offset year; and
 (b) 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