S 73BC repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011.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 73BC formerly read:
SECTION 73BC MEANING OF
NOTIONAL DIVISION 40 DEDUCTION
73BC(1)
An eligible company has a
notional Division 40 deduction
for a section
73BA
depreciating asset for a year of income if it would be entitled to a deduction under section
40-25
of the
Income Tax Assessment Act 1997
for the asset for the year of income assuming the changes set out in this section were made.
73BC(2)
First change: replacement of references to use or installation ready for use for purpose of producing assessable income or for taxable purpose.
The first change is that references in Division
40
of the
Income Tax Assessment Act 1997
(other than for the purposes of sections
40-100
,
40-105
and
40-110
) to using the asset, or having it installed ready for use:
(a)
for the purpose of producing assessable income; or
(b)
for a taxable purpose;
are instead references to using the asset for the purpose of the carrying on by or on behalf of the eligible company of research and development activities.
Note 1:
Section
73BG
modifies sections
40-100
,
40-105
and
40-110
(about effective life) so that a reference to the research and development purpose is added to the existing references, rather than replacing them.
Note 2:
If Division
250
of the
Income Tax Assessment Act 1997
applies to you and an asset:
(a) if section
250-150
of that Act applies
-
the asset is taken to be used, or installed ready for use, for the purpose of carrying on, by or on behalf of an eligible company, research or development activities to the extent specified in a determination made under subsection
250-150(3)
of that Act; or
(b) otherwise
-
the asset is taken not to be used, or installed ready for use, for such a purpose.
History
S 73BC(2) amended by
No 164 of 2007
, s 3 and Sch 1 items 30 and 31, by inserting note 2 at the end, effective 25 September 2007.
73BC(3)
Second change: method for working out decline in value where previous Division 40 deduction.
The second change is that, if the eligible company was actually entitled to a deduction under Division
40
of the
Income Tax Assessment Act 1997
for the section
73BA
depreciating asset for any period before the start of the first period for which the company will be entitled to a deduction for the asset under this subsection, the same method for working out the decline in value as the company was using for the asset for the earlier period is used.
73BC(4)
Third change: treatment of expenditure to which section
73BD
or
73BE
applies.
The third change is that, in working out the cost of the section
73BA
depreciating asset, any amount of expenditure (
section 73BA depreciating asset expenditure
) that would otherwise form part of that cost is to be ignored or treated in some other way if section
73BD
or
73BE
so provides for the purposes of this section.
73BC(5)
Fourth change: certain provisions to be ignored.
The fourth change is that Division
40
of the
Income Tax Assessment Act 1997
applies as if section
73BA
of this Act, and section
40-425
and Subdivision
328-D
of that Act, had not been enacted.
73BC(6)
In this section:
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
.
S 73BC inserted by No 170 of 2001.
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