Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:11_73qb:p2
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 11 cl 73QB (pt 2/2)
Character Range: 299281–301577

between companies at the end of the Y0 year of income; and

(b) secondary group members to be determined on the basis of the relationship between a company and a primary group member during the primary group member's group membership period (which ends at the end of the Y0 year of income and starts at or after the start of the Y‑3 year of income).

Amount of deduction

 (3) The eligible company may deduct an amount for the Y0 year of income equal to 75% of the eligible company's share of the foreign owned part of the adjusted increase in expenditure on R&D by the group.

 (4) The eligible company's share of the foreign owned part of the adjusted increase in expenditure on R&D by the group is the amount worked out using the formula:
where:

adjusted increase in expenditure on R&D by the group means the amount worked out under section 73RE.

increase in expenditure on foreign owned R&D by the eligible company means the amount worked out under subsection 73RB(1).

net increase in expenditure on Australian owned R&D by the group means the amount worked out under section 73RC.

net increase in expenditure on foreign owned R&D by the group means the amount worked out under section 73RD.

total increase in expenditure on foreign owned R&D by the eligible companies in the group means the amount worked out under subsection 73RB(2).

Note: The amount worked out using the formula will not be more than zero if at least one of the following is zero:

(a) the increase in expenditure on foreign owned R&D by the eligible company;

(b) the net increase in expenditure on foreign owned R&D by the group;

(c) the adjusted increase in expenditure on R&D by the group.

Solitary company may be able to deduct under subsection (1)

 (5) To avoid doubt, an eligible company for which there are no other group members may be able to deduct an amount under subsection (1).

Note: For an eligible company for which there are no other group members, the values of the following components of the formula in subsection (4) will all be the same:

(a) the increase in expenditure on foreign owned R&D by the eligible company;

(b) the total increase in expenditure on foreign owned R&D by the eligible companies in the group;

(c) the net increase in expenditure on foreign owned R&D by the group.