Income Tax Assessment Act 1936

Div 3 heading inserted by No 172 of 1978.

S 73BE repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011.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 73BE formerly read:

SECTION 73BE TREATMENT OF CERTAIN PARTNERSHIP EXPENDITURE FOR THE PURPOSES OF SECTION 73BC ETC.  
73BE(1) When section applies.  

If section 73BA depreciating asset 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.

73BE(2) Contributions by partners.  

Each partner is taken, for the purposes of sections 73BC , 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.

73BE(3) Recoupments or grants.  

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 73BC , 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:

Amount of recoupment or grant × Partner's contribution Total contributions

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.

73BE(4) Exception to subsections (2) and (3).  

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.

73BE(5) Effect on net income and partnership loss calculation.  

Any expenditure that a partner is taken to have incurred by subsection (2) or (3) of this subsection, and any recoupment or grant that a partner is taken to have received or become entitled to receive, is not to be taken into account in determining the net income of the partnership or any partnership loss, as the case may be, of the year of income.

73BE(6) Provisions to apply to each partner, not partnership.  

Subject to subsections (2) to (5) of this section, sections 73BC , 73C and 73CA of this Act, and Subdivision 20-A of the Income Tax Assessment Act 1997 , apply in relation to each such partner that is an eligible company as if that partner, and not the partnership, were, or had been, carrying on the relevant project and activities, but so apply with such modifications to those sections as are appropriate having regard to the partner's interest in the partnership.

73BE(7) Definitions.  

In this section:

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

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History

Definition of " Board " amended by No 164 of 2007 , s 3 and Sch 12 item 69, 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 73BE inserted by No 170 of 2001.