Document ID: chunk:federal_register_of_legislation:C2021C00270:clause:5_29:p3
Version: federal_register_of_legislation:C2021C00270
Segment Type: clause
Provision Reference: sch 5 cl 29 (pt 3/10)
Character Range: 68488–71091

transformed feedstock output, (the marketable product), is:
 (i) *supplied by the R&D entity to another entity; or
 (ii) applied by the R&D entity to the R&D entity's own use, other than use for the purpose of transforming that product for supply.
 (2) The amount is equal to the lesser of:
 (a) the *feedstock revenue for the feedstock output; and
 (b) so much of the total of the amounts deducted as described in paragraph (1)(b) as is reasonably attributable to the production of the feedstock output.
 (3) Subsection (2) does not apply to the feedstock output if:
 (a) it becomes, or is transformed into, a feedstock input; or
 (b) that subsection already applies to the feedstock output because of the application of paragraph (1)(c) to:
 (i) an earlier time during the present year; or
 (ii) an earlier income year.
 (4) The feedstock revenue, for the feedstock output, is worked out using the following formula:
where:
market value of the marketable product means the marketable product's *market value at the time it is:
 (a) *supplied by the *R&D entity to the other entity; or
 (b) first applied by the R&D entity to the R&D entity's own use, other than use for the purpose of transforming that product for supply.
 (5) This section applies to a *supply or use of the marketable product by:
 (a) an entity *connected with the *R&D entity; or
 (b) an *affiliate of the R&D entity or an entity of which the R&D entity is an affiliate;
as if it were by the R&D entity.

355‑446  Balancing adjustments for assets only used for R&D activities
 (1) The *R&D entity has an amount under this section if:
 (a) a *balancing adjustment event happens in the present year for an asset *held by the R&D entity; and
 (b) the R&D entity cannot deduct, for the asset for an income year, an amount under section 40‑25 as that section applies apart from:
 (i) this Division; and
 (ii) former section 73BC of the Income Tax Assessment Act 1936; and
 (c) the R&D entity is entitled under section 355‑100 to *tax offsets for one or more income years for deductions under section 355‑305 for the asset; and
 (d) the R&D entity is registered under section 27A of the Industry Research and Development Act 1986 for one or more *R&D activities for the present year; and
 (e) an amount (the section 40‑285 amount) is included in the R&D entity's assessable income for the present year under subsection 355‑315(3) for the asset and the balancing adjustment event.
Note 1: This section applies in a modified way if the entity also has deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment