Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:11_80
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 11 cl 80
Character Range: 322913–324458

80  Transitional provisions—reduced notional expenditure on foreign owned R&D

(1) This item has effect for the purposes of the application of sections 73P to 73Z (inclusive) of the Income Tax Assessment Act 1936 as amended by this Schedule, if:
 (a) in its group membership period including all or part of the year of income (the initial year) starting after 30 June 2007 and before 1 July 2008, an eligible company has incurred an amount of expenditure that is expenditure on foreign owned R&D by the eligible company in its group membership period for the year of income; and
 (b) any of the 3 immediately preceding years of income were not nil expenditure years.

(2) For the purposes of paragraph 73QB(1)(b) of the Income Tax Assessment Act 1936, the eligible company is taken to have been able to deduct an amount under subsection 73B(14C) of that Act for each of the following years of income:
 (a) the year of income before the initial year;
 (b) the year of income 2 years before the initial year;
 (c) the year of income 3 years before the initial year.

(3) The reduced notional expenditure on foreign owned R&D by the eligible company in its group membership period for an earlier year of income described in the second column of an item of the table is taken to be the amount set out in the third column of that item.

Reduced notional expenditure on foreign owned R&D
Item                                               Earlier year of income                              Amount of reduced notional expenditure on foreign owned R&D