INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 73D   REDUCTION OF DEDUCTIONS  

73D(1A)   [Limited application]  

This section does not apply to an amount received in the 1997-98 year of income or a later year of income if the amount is received as recoupment as defined by section 20-25 of the Income Tax Assessment Act 1997 .

Note:

Subdivision 20-A of the Income Tax Assessment Act 1997 applies instead.

73D(1)   [Interpretation]  

For the purposes of interpretation, this section is to be read and construed as if it were part of section 73B .

73D(2)   [Calculation of deduction]  

Where:

(a) an eligible company has, on or after 21 November 1987, incurred expenditure on research and development activities that formed or form part of a particular project carried on by or on behalf of the company; and

(b) the company has, whether before or after the commencement of this section, received, or become entitled to receive, as a recoupment of, or as a grant in respect of, any of that expenditure an amount or amounts that has not or have not been, and will not be, included in the assessable income of the company of any year of income;

the deduction, or the sum of the deductions, that, but for this subsection, would be allowable under section 73B (as affected by sections 73C and 73CA ) in respect of the expenditure referred to in paragraph (a) in the assessment or assessments of the company in respect of income of any year or years of income is reduced by an amount equal to so much of that deduction or sum as does not exceed the amount or the total of the amounts referred to in paragraph (b).

73D(2A)   [Recoupments or grants made under the Co-operative Research Centres Program]  

A reference in this section to a recoupment of, or a grant in respect of, any of the expenditure incurred by an eligible company on research and development activities that formed or form part of a particular project carried on by or on behalf of the company does not include a reference to a recoupment or grant where the recoupment or grant is made:

(a) by or from the Commonwealth; and

(b) under the program known as the Co-operative Research Centres Program.

73D(3)   [Regard to be had to income years]  

In applying subsection (2):

(a) subject to paragraph (b), regard is to be had to the years of income of the company in the following order:

(i) the year of income, or, in chronological order, each year of income, in which the company received, or became entitled to receive, an amount referred to in paragraph (2)(b);

(ii) in reverse chronological order, each year of income before the year, or the earliest year, of income referred to in subparagraph (i);

(iii) in chronological order, each year of income to which regard has not been had under subparagraph (i) or (ii); and

(b) if the company did not receive, or become entitled to receive, any amount referred to in paragraph (2)(b) until after the last year of income in which any of the expenditure referred to in paragraph (2)(a) was incurred, regard is to be had first to the latest year of income in respect of which a deduction was allowed, or is allowable, under section 73B in respect of any of that expenditure and then, in reverse chronological order, to each of the earlier years of income.