Income Tax Assessment Act 1936

Div 3 heading inserted by No 172 of 1978.

S 73BD repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011. For application, savings and transitional provisions see note under s 82KZLB . S 73BD formerly read:

SECTION 73BD TREATMENT OF CERTAIN EXPENDITURE FOR THE PURPOSES OF SECTION 73BC ETC.  
73BD(1) Requirement for registration under Industry Research and Development Act.  

Section 73BA depreciating asset expenditure incurred by an eligible company in a year of income in relation to research and development activities is ignored for the purposes of section 73BC unless:

(a) the company is registered, in relation to the year of income and in relation to those activities, under section 39J of the Industry Research and Development Act 1986 ; or

(b) the company is registered, in relation to the year of income and in relation to a project comprising or including those activities, under section 39P of that Act.

73BD(2) Non-arm's length expenditure.  

If:

(a) an eligible company has incurred an amount of section 73BA depreciating asset expenditure; and

(b) the Commissioner is satisfied that:

(i) having regard to any connection between the company and the person to whom the expenditure was incurred and to any other relevant circumstances, the company and that other person were not dealing with each other at arm's length in relation to the incurring of that expenditure; and

(ii) the amount of that expenditure would have been less if the company and that other person had dealt with each other at arm's length in relation to the incurring of that expenditure;

so much only of that expenditure is to be taken into account for the purposes of section 73BC as the Commissioner considers reasonable having regard to:

(c) the connection between the company and that other person; and

(d) the amount of the expenditure that would, in the opinion of the Commissioner, have been incurred by the company if the company and that other person had dealt with each other at arm's length in relation to the incurring of that expenditure; and

(e) such other matters as the Commissioner considers relevant.

73BD(3) Effect of certificate under section 39M or 39MA of Industry Research and Development Act.  

Subject to subsection (8), if the Board gives to the Commissioner a certificate under section 39M or 39MA of the Industry Research and Development Act 1986 in respect of particular activities in respect of which section 73BA depreciating asset expenditure has been incurred by an eligible company, the expenditure is ignored for the purposes of section 73BC .

73BD(4) Effect of certificate under section 39N of Industry Research and Development Act.  

Subject to subsection (8), if the Board gives to the Commissioner a certificate stating that a company has failed to comply with a notice under section 39N of the Industry Research and Development Act 1986 in respect of particular activities in respect of which section 73BA depreciating asset expenditure has been incurred by an eligible company, the expenditure is ignored for the purposes of section 73BC .

73BD(5) Effect of certificate under subsection 39P(4) of Industry Research and Development Act.  

Subject to subsection (8), if the Board gives to the Commissioner a certificate in relation to a company or companies under subsection 39P(4) of the Industry Research and Development Act 1986 , section 73BA depreciating asset expenditure in relation to research and development activities referred to in the certificate that is incurred by that company or any of those companies after the day on which notice was given to the company concerned under paragraph 39P(5)(a) is ignored for the purposes of section 73BC .

73BD(6) Effect of certificate under subsection 39PB(6) of Industry Research and Development Act.  

Subject to subsections (7) and (8), if the Board gives to the Commissioner a certificate in relation to a company or companies under subsection 39PB(6) of the Industry Research and Development Act 1986 , section 73BA depreciating asset expenditure in relation to research and development activities referred to in the certificate that is incurred by that company or any of those companies after the day stated in the certificate is ignored for the purposes of section 73BC .

73BD(7)
Subsection (6) of this section does not apply to section 73BA depreciating asset expenditure in relation to research and development activities in respect of which a company is registered under section 39J of the Industry Research and Development Act 1986 .

73BD(8) Effect of revocation of certificates mentioned above.  

If a certificate mentioned in subsection (3), (4), (5) or (6) is revoked, this section applies, and is taken to have applied, as if the certificate had not been given.

73BD(9) Expenditure on overseas research and development activities.  

Section 73BA depreciating asset expenditure incurred by an eligible company on overseas research and development activities is ignored for the purposes of section 73BC unless the Board gave a provisional certificate in respect of the expenditure under section 39ED of the Industry Research and Development Act 1986 before the expenditure was incurred.

73BD(10) Expenditure incurred on behalf of another person.  

Section 73BA depreciating asset expenditure incurred by an eligible company for the purpose of carrying on research and development activities on behalf of any other person is ignored for the purposes of section 73BC to the company.

73BD(11)
Subsection (10) does not apply in relation to expenditure incurred on behalf of a partnership by a partner in the partnership in that partner's capacity as such a partner.

73BD(12) Definitions.  

In this section:

Board
means Innovation Australia, established by the Industry Research and Development Act 1986 .

 View history note

 Hide history note

History

Definition of " Board " amended by No 164 of 2007 , s 3 and Sch 12 item 68, by substituting " Innovation Australia, " for " the Industry Research and Development Board " , effective 27 September 2007.

eligible company
has the same meaning as in section 73B .

research and development activities
has the same meaning as in section 73B .

section 73BA depreciating asset
has the meaning given by section 73BB .

section 73BA depreciating asset expenditure
has the meaning given by subsection 73BC(4) .

S 73BD inserted by No 170 of 2001.