Income Tax Assessment Act 1997
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Hide history noteNote: A Commissioner ' s Remedial Power (CRP 2017/2) is relevant to this part of the tax law. Taxation Administration (Remedial Power - Small Business Restructure Roll-over) Determination 2017 (F2017L01687) modifies the operation of s 40-340 of the Income Tax Assessment Act 1997 and any other provisions of a taxation law whose operation is affected by the modified operation of s 40-340 in relation to an asset transferred under a small business restructure roll-over (item 8 of the table in s 40-340(1) ).
The operation of the relevant provisions is modified as follows:
If s 40-340 of ITAA 1997 provides for rollover relief in relation to a disposal of a depreciating asset because the condition in item 8 of the table in s 40-340(1) of ITAA 1997 is satisfied in relation to the asset, that section has effect as if it also provided that the disposal of the asset has no direct consequences under the income tax law (other than Div 40 of ITAA 1997).
The modification applies in respect of transfers on or after 8 May 2018.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to the Taxation Administration Act 1953 to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
SECTION 40-293 Adjustments - partnership assets used for both general tax purposes and R & D activities 40-293(1)
This section applies to an *R & D partnership if:
(a) a *balancing adjustment event happens in an income year (the event year ) for a *depreciating asset *held by the R & D partnership and for which:
(i) the R & D partnership can deduct, for an income year, an amount under section 40-25 , as that section applies apart from Division 355 and former section 73BC of the Income Tax Assessment Act 1936 ; or
(ii) the R & D partnership could have deducted, for an income year, an amount as described in subparagraph (i) if it had used the asset; and
(b) one or more partners of the R & D partnership are entitled under section 355-100 to *tax offsets for one or more income years for deductions (the R & D deductions ) under section 355-520 for the asset.
Note 1:
This section applies in a modified way if the partners have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40-293 of the Income Tax (Transitional Provisions) Act 1997 ).
Note 2:
To the extent any amount that is included in the R & D partnership ' s assessable income under section 40-285 relates to R & D activities, a partner may have an additional amount included in the partner ' s assessable income (see section 355-449 ).
Note 3:
To the extent any amount that the R & D partnership is entitled to as a deduction under section 40-285 relates to R & D activities, a partner may have an additional amount the partner can deduct (see section 355-468 ).
Section 40-290 to be applied as if use for conducting R & D activities were use for a taxable purpose
40-293(2)
In applying section 40-290 (including references in that section to the reduction of deductions under section 40-25 ) in relation to the asset, assume that using the asset for a *taxable purpose includes using it for the purpose of conducting the *R & D activities to which the R & D deductions relate.
40-293(3)
(Repealed by No 92 of 2020)
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