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

26A   Simplified outline

The following is a simplified outline of this Part:

• The Board may, on application by an R&D entity, register the R&D entity for R&D activities. This registration is needed before the R&D entity can be entitled to a tax offset (an R&D tax offset ) under Division 355 of the Income Tax Assessment Act 1997 for the R&D activities.

• The R&D entity can seek an advance finding to get early notice about whether an activity is considered to be an R&D activity.

• The R&D entity can seek a finding that an activity cannot be conducted in Australia. The finding is needed before expenditure incurred on the activity can count towards an R&D tax offset.

• The Board may register entities as research service providers capable of providing research services to R&D entities.

• Internal and external review can be sought for certain decisions under this Part.

Division 2 - Registering for the R&D tax offset

Subdivision A - Introduction

27 Simplified outline

The following is a simplified outline of this Division:

• The Board may register an R&D entity for R&D activities conducted during an income year.

• The Board may make findings about the nature of an R&D entity’s activities both before and after registration. This includes findings made on application by the R&D entity after registration.

• These findings bind the Commissioner for the purposes of any entitlement of the R&D entity to a tax offset under Division 355 of the Income Tax Assessment Act 1997 for the activities.

• The Board will register an R&D entity’s activities consistently with any findings made about the entity’s application. Any findings made about these activities after registration will, if necessary, automatically vary the entity’s registration.

• Registrations can also be varied and revoked.

Subdivision B - Registering R&D entities for R&D activities