Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 378 - Digital games (tax offset for Australian expenditure on digital games)  

Subdivision 378-A - Tax offset for Australian expenditure in developing digital games  

SECTION 378-15   Amount of digital games tax offset  

378-15(1)    
Subject to subsection (2) , the amount of the digital games tax offset for a company for an income year is the lower of:

(a)    30% of the sum of all the amounts determined by the *Arts Minister under section 378-30 that are specified in certificates issued to the company for the income year under section 378-25 ; and

(b)    $20,000,000.

378-15(2)    
If the sum of the amounts of the digital games tax offset for an income year worked out under subsection (1) for:

(a)    the company; and

(b)    each other company (each of which is a related company ) that is *connected with or is an *affiliate of the company;

is greater than $20,000,000, the amount of the digital games tax offset for the company is:

(c)    if the requirements of subsections (3) and (4) are satisfied - the amount specified in the notice given by the company under subsection (3) ; or

(d)    otherwise - nil.

378-15(3)    
The requirements of this subsection are:

(a)    the company gives the Commissioner a notice in the *approved form specifying an amount that is not more than 30% of the sum of all the amounts determined by the *Arts Minister under section 378-25 that are specified in certificates issued to the company for the income year under section 378-30 ; and

(b)    one or more of the related companies also give the Commissioner a notice in the approved form specifying an amount that is not more than 30% of the sum of all the amounts determined by the Arts Minister under section 378-25 that are specified in certificates issued to the related company for the income year under section 378-30 ; and

(c)    the sum of all the amounts specified in the notices given by the company and those related companies does not exceed $20,000,000.

Example:

Bilby Co is primarily responsible for developing a digital game. Wombat Co, a company connected with Bilby Co, is also primarily responsible for developing a digital game. The amount worked out under subsection (1) is $15,000,000 for the income year for each company. Since the sum of these amounts exceeds $20,000,000, the companies must coordinate with one another to ensure that the amount collectively claimed stays under the $20,000,000 cap. Bilby Co and Wombat Co agree that for the income year, they will each give the Commissioner a notice specifying $10,000,000 in notices. If they both do so, each will receive an offset of $10,000,000 for the income year.

378-15(4)    
A notice given under subsection (3) by a company in relation to an income year must be given at the same time as the company claims the digital games *tax offset in its *income tax return for the income year.

378-15(5)    
A company may vary the amount specified in a notice given under subsection (3) in relation to an income year if:

(a)    in specifying the amount in the notice:

(i) the company made an inadvertent error in determining whether another company is a related company; and

(ii) as a result the company did not take account of the amount of the digital games tax offset for the other company for the income year; and

(b)    the company gives the Commissioner a notice in the *approved form specifying the varied amount.

Otherwise, the notice is irrevocable.