S 73BG repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011.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 73BG formerly read:
SECTION 73BG EFFECTIVE LIFE CALCULATION UNDER DIVISION 40 OF
INCOME TAX ASSESSMENT ACT 1997
TO TAKE INTO ACCOUNT USE FOR PURPOSE OF CARRYING ON RESEARCH AND DEVELOPMENT ACTIVITIES
73BG(1)
This section has effect for the purposes of working out, under sections
40-100
,
40-105
and
40-110
of the
Income Tax Assessment Act 1997
(whether in their application for the purposes of section
73BA
of this Act or otherwise), the effective life of a depreciating asset of an eligible company.
73BG(2)
If, at the time at which the effective life is worked out, it is reasonably likely that the depreciating asset will be used at some time by any eligible company for the purpose of the carrying on by or on behalf of the eligible company of research and development activities:
(a)
the references in:
(i)
item 1.1 of the table in section
40-10
of the
Income Tax Assessment Act 1997
to the period the asset can be used to produce income; and
(ii)
sections
40-100
,
40-105
and
40-110
of that Act to the period the asset can be used by any entity for a taxable purpose or for the purpose of producing exempt income;
include a reference to the period the asset can be used by any eligible company for the purpose of the carrying on by or on behalf of the eligible company of research and development activities; and
(b)
in applying paragraph 40-100(4)(c) and subsection
40-105(2)
of the
Income Tax Assessment Act 1997
, it is to be concluded that no eligible company that can use the asset for the purpose of the carrying on by or on behalf of the eligible company of research and development activities will scrap the asset, will sell it for scrap value or less or will abandon it, for reasons attributable to technical risk in the carrying on of those activities.
73BG(3)
In this section:
depreciating asset
has the same meaning as in Division
40
of the
Income Tax Assessment Act 1997
.
eligible company
has the same meaning as in section
73B
.
research and development activities
has the same meaning as in section
73B
of this Act.
S 73BG inserted by No 170 of 2001.
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