Income Tax Assessment Act 1936

Div 3 heading inserted by No 172 of 1978.

S 73CB repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011.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

SECTION 73CB EXPENDITURE INCURRED TO TAX-EXEMPT BODIES  
73CB(1)
In this section:

agreement
means any agreement, arrangement, understanding or scheme, whether formal or informal, whether express or implied, and whether or not intended to be enforceable by legal proceedings.

Australian government
means the Commonwealth, a State or a Territory.

Australian governmental authority
means an authority of the Commonwealth, of a State or of a Territory.

tax-exempt entity
means a person, a body or association of persons (whether incorporated or unincorporated), or a fund, that is not liable to income tax and, without limiting the generality of the above, includes an Australian government and an Australian governmental authority that is not liable to income tax.

73CB(2)
For the purposes of this section:

(a) a body is taken to be an authority of the Commonwealth if:

(i) the Commonwealth has a controlling interest in the body; or

(ii) the Commonwealth has an interest in the body and the only other persons having an interest in the body are Australian governments or Australian governmental authorities; and

(b) a body is taken to be an authority of a State if:

(i) the State has a controlling interest in the body; or

(ii) the State has an interest in the body and the only other persons having an interest in the body are Australian governments or Australian governmental authorities; and

(c) a body is taken to be an authority of a Territory if:

(i) the Territory has a controlling interest in the body; or

(ii) the Territory has an interest in the body and the only other persons having an interest in the body are Australian governments or Australian governmental authorities.

73CB(3)
For the purposes of this section, but without limiting the meaning of the expression ``associate'':

(a) the Commonwealth is taken to be an associate of each authority of the Commonwealth; and

(b) an authority of the Commonwealth is taken to be an associate of each other authority of the Commonwealth; and

(c) a State is taken to be an associate of each authority of the State; and

(d) an authority of a State is taken to be an associate of each other authority of the State; and

(e) a Territory is taken to be an associate of each authority of the Territory; and

(f) an authority of a Territory is taken to be an associate of each other authority of the Territory.

73CB(4)
For the purposes of interpretation, this section is to be construed as if it were part of section 73B .

73CB(5)
If:

(a) an eligible company incurs expenditure to a tax-exempt entity, or an associate of a tax-exempt entity, in connection with research and development activities carried out on behalf of the company; and

(b) when the expenditure was incurred, the company was not at risk in respect of the whole of the expenditure or was not at risk in respect of a part of the expenditure; and

(c) at the time when the expenditure was incurred, the tax-exempt entity or associate, as the case requires, was not entered on the Register of Commercial Government Bodies kept under section 39HA of the Industry Research and Development Act 1986 ;

a deduction is not allowable to the company under section 73B , 73BA or 73BH for any part of the expenditure.

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History

S 73CB(5) amended by No 170 of 2001.

73CB(6)
For the purposes of the application of this section in relation to any expenditure incurred by a company, the company is taken to have not been at risk in respect of the expenditure at the time when the expenditure was incurred if, in the Commissioner's opinion, the company or any associate of the company could reasonably have expected at that time to receive, as the direct or indirect result of the incurring of the expenditure or any part of the expenditure, any consideration because of:

(a) any act that occurred, transaction or agreement that was entered into, or circumstance that existed, before or at that time; or

(b) any act that was likely to occur, any transaction or agreement that was likely to be entered into, or any circumstance that was likely to exist, after that time.

S 73CB substituted by No 171 of 1995 and inserted by No 224 of 1992.

Archived:

S 73D repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 84, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .