Document ID: chunk:federal_register_of_legislation:C2005C00282:clause:2_73bl:p1
Version: federal_register_of_legislation:C2005C00282
Segment Type: clause
Provision Reference: sch 2 cl 73BL (pt 1/2)
Character Range: 23846–26495

73BL  Treatment of certain partnership expenditure for the purposes of section 73BJ etc.

When section applies

 (1) If section 73BH plant expenditure has been incurred by a partnership in which, when the expenditure was incurred:
 (a) at least one partner was an eligible company; and
 (b) either:
 (i) each other partner was an eligible company or was a body corporate that was, or is taken to have been, registered under section 39F of the Industry Research and Development Act 1986 as a research agency in respect of the class of research and development activities on which the expenditure was incurred; or
 (ii) the partnership was designated as a Co‑operative Research Centre under the program known as the Co‑operative Research Centres Program;
the following provisions have effect.

Contributions by partners

 (2) Each partner is taken, for the purposes of sections 73BJ, 73C and 73CA of this Act, and Subdivision 20‑A of the Income Tax Assessment Act 1997, to have incurred so much (if any) of the expenditure as was incurred out of money contributed by the partner (otherwise than by way of loan), whether in the year of income in which the expenditure was incurred or a previous year of income.

Recoupments or grants

 (3) If the partnership has, whether before or after the commencement of this subsection, received, or become entitled to receive, a recoupment of, or a grant in respect of, the whole or any part of the expenditure, each partner is to be taken, for the purposes of sections 73BJ, 73C and 73CA of this Act, and Subdivision 20‑A of the Income Tax Assessment Act 1997, to have received, or become entitled to receive, so much (if any) of the recoupment or grant as is worked out in accordance with the formula:
where:

partner's contribution means the total contribution made (otherwise than by way of loan) by the partner to the funds of the partnership as at the time when the recoupment or grant was received or the entitlement to the recoupment or grant arose, as the case may be.

total contribution means the total of the contributions made (otherwise than by way of loan) by all the partners to the funds of the partnership as at the time when the recoupment or grant was received or the entitlement to the recoupment or grant arose, as the case may be.

Exception to subsections (2) and (3)

 (4) If the partnership is not designated as a Co‑operative Research Centre under the program known as the Co‑operative Research Centres Program, subsection 73C(2A) does not apply in relation to the expenditure that a partner is taken to have incurred by subsection (2) or (3) of this section.

Effect on net income