Tax Laws Amendment (Research and Development) Act 2015 (13 of 2015)

Schedule 1   Reduced tax offset rate for expenditure above $100 million

Part 1   Main amendments

Income Tax (Transitional Provisions) Act 1997

7   After subsection 355-325(4)

Insert:

Amount to be included in assessable income may be reduced if notional deductions exceeded $100 million

(4A) For the purposes of subsection (4), the partner may choose to reduce the adjusted section 40-285 amount in that subsection if:

(a) subsection 355-100(3) of the Income Tax Assessment Act 1997 applied to the partner for an earlier income year or the event year (the excess year ); and

(b) the partner’s deductions for the excess year included deductions covered by paragraph (1)(c) of this section for the asset.

(4B) Subsection 355-720(3) of the Income Tax Assessment Act 1997 applies to the partner as if a reduction under subsection (2) of that section for the present year included a reduction under subsection (4A) of this section for the event year.

(4C) The way the partner prepares its income tax returns is sufficient evidence of the making of a choice under subsection (4A).

(4D) A choice under subsection (4A) is irrevocable.