Tax Laws Amendment (Research and Development) Act 2011 (93 of 2011)

Schedule 2   Innovation Australia's role

Part 1   Main amendment

Industry Research and Development Act 1986

28E   Findings about whether technology is core technology

(1) If an R&D entity has acquired, or has acquired the right to use, particular technology wholly or partly for the purposes of one or more R&D activities conducted, or to be conducted, during one or more income years, the Board may:

(a) find that the technology is core technology for the R&D activities; or

(b) find that the technology is not core technology for the R&D activities; or

(c) if justified in accordance with the decision-making principles - refuse to make a finding about the technology and the R&D activities.

Note 1: A finding, or a refusal to make a finding, is reviewable (see Division 5).

Note 2: A finding under paragraph (a) means that a tax offset will not be available for expenditure incurred in acquiring, or in acquiring the right to use, the technology for the R&D activities (see subsection 355-225(2) of the Income Tax Assessment Act 1997).

Note 3: Section 32A deals with the decision-making principles.

(2) Particular technology is core technology for one or more R&D activities if:

(a) a purpose of the R&D activities was or is:

(i) to obtain new knowledge based on that technology; or

(ii) to create new or improved materials, products, devices, processes, techniques or services to be based on that technology; or

(b) the R&D activities were or are an extension, continuation, development or completion of the activities that produced that technology.

(3) The Board must make a finding under paragraph (1)(a) or (b) if requested by the Commissioner to make a finding under this section.

(4) In addition to subsection (3), the Board:

(a) may make a finding under subsection (1) on its own initiative; and

(b) must make a decision under subsection (1) if the R&D entity applies for a finding under this section.

Note: For requirements of applications, see section 28G.

(5) This section has effect subject to section 32B (findings cannot be inconsistent with any earlier findings).

Subdivision E - Matters relevant to findings under this Division