Div 3 heading inserted by No 172 of 1978.

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S 73R repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011.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 73R formerly read:

SECTION 73R GROUP MEMBERS  
73R(1)
This section sets out rules for determining which eligible companies that have deducted or can deduct an amount under subsection 73B(13) , (14) or (14C) , or that received a start grant or commercial ready grant, are group members. In applying this section, use section 73L to determine whether companies are grouped.

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History

S 73R(1) amended by No 164 of 2007 , s 3 and Sch 11 item 35, by substituting the first sentence, effective 25 September 2007. For application provision, see note under s 73B(1AAA) . For transitional provisions regarding reduced notional expenditure on foreign owned R & D, see note under s 73P(1) . The first sentence formerly read:

This section sets out rules for determining whether an eligible company that has deducted or can deduct an amount under subsection 73B(13) or (14) is a group member in relation to another company that has deducted or can deduct such an amount.

73R(2)
Work out the group members of the eligible company and their group membership periods in this way: Method statement

Step 1.

Work out, as at the last day of the Y ₀ year of income, which companies are grouped with the eligible company. The eligible company and these grouped companies are the primary group members .

Step 2.

Work out the day before the last day of the Y ₀ year of income, or the first day of the Y _{− 3} year of income, whichever is the later, when a company that is a primary group member:

(a) was controlled, as mentioned in section 73L , by a person other than a person who controlled it as at the last day of the Y ₀ year of income; or

(b) acted, or could be expected to act, in accordance with the directions or wishes of a person other than a person in accordance with whose directions or wishes it acted, or could be expected to act, as at the last day of the Y ₀ year of income.

The period between this day and the last day of the Y ₀ year of income is that company ' s group membership period .

Step 3.

Any other company that was grouped with a primary group member at a time during the member ' s group membership period is a secondary group member .

Step 4.

Work out the day before the last day of the Y ₀ year of income when a secondary group member became grouped with the primary group member as mentioned in step 3, or the first day of the Y _{− 3} year of income, whichever is the later.

Step 5.

Work out the day before the last day of the Y ₀ year of income when the secondary group member was not so grouped with the primary group member. The period between that day and the day worked out under step 4 is the secondary group member ' s group membership period .

73R(3) Exception: secondary member leaving with a viable business.  

The period that would be a secondary group member ' s group membership period is treated as never having existed if, at the end of that period when the secondary group member stops being grouped with a primary group member, the secondary group member has a viable business.

73R(4) Exception: extending group membership period.  

The group membership period of a group member of a particular group (the current group ) is extended to include its history period with its former group (see subsection (5)) if, when the company became a group member of the current group, it did so with a viable business.

73R(5) Viable business.  

A company stops being or starts being a group member of a group with a viable business if:

(a) sufficient assets (including assets that have been used in carrying on research and development activities) are transferred under the transactions involved in the change of control to allow the continued operation of a business; and

(b) the person or persons that disposed of control of the company agree in writing with the person or persons that gain control that this subsection should apply; and

(c) the person or persons that disposed of control of the company provide written details of the following needed to enable the making of calculations required by sections 73QA , 73QB , 73RA , 73RB , 73RC , 73RD , 73RE , 73T and 73V :

(i) expenditure incurred by the company during the period (its history period ) it was a group member of its former group;

(ii) receipts of grants and recoupments relating to that expenditure;

(iii) entitlements to receive grants and recoupments relating to that expenditure.

Note:

The definition of person includes trusts, partnerships and other entities as well as companies: see section 73H .

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History

S 73R(5) amended by No 164 of 2007 , s 3 and Sch 11 item 36, by substituting para (c), effective 25 September 2007. For application provision, see note under s 73B(1AAA) . For transitional provisions regarding reduced notional expenditure on foreign owned R & D, see note under s 73P(1) . Para (c) formerly read:

(c) the person or persons that disposed of control of the company provide written details of incremental expenditure incurred by the company during the period (its history period ) it was a group member of its former group.

73R(6)
The written agreement referred to in paragraph (5)(b) must be made, and the written details referred to in paragraph (5)(c) must be provided:

(a) for a change of control occurring before 1 July 2002 - by 30 June 2002; or

(b) otherwise - by the end of the year of income in which the change of control occurs; or

(c) within a further time allowed by the Commissioner.

S 73R inserted by No 170 of 2001.