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

27N   Revoking registrations

(1) The Board may, by notice in writing given to an entity, revoke the entity’s registration under section 27A for an income year if the Board is satisfied that the entity was not an R&D entity at any time when an activity covered by the registration was conducted during the income year.

Note: A decision to revoke under this subsection is reviewable (see Division 5).

(2) The Board may, by notice in writing given to an R&D entity, revoke the entity’s registration under section 27A for an income year if the entity requests the Board to do so.

(3) A request for a revocation under subsection (2) must be:

(a) in the approved form; and

(b) accompanied by the fee (if any) specified in regulations made under section 48A for the purposes of this section.

Note: Section 32 deals with approved forms.

(4) For the purposes of this Act and the Income Tax Assessment Act 1997, the effect of a revocation under this section is that the entity is taken never to have been registered under section 27A for the income year.

Note: This subsection will cease to apply if a revocation under subsection (1) is set aside on review (see Division 5).

(5) The Board must notify the Commissioner of a revocation under this section.

Division 3 - Other findings

Subdivision A - Introduction

28 Simplified outline

The following is a simplified outline of this Division:

• An R&D entity can seek a finding (an advance finding ) about whether an activity is an R&D activity.

• An advance finding binds the Commissioner for the purpose of working out tax offsets ( R&D tax offset s) under Division 355 of the Income Tax Assessment Act 1997.

• An R&D entity can seek a finding that an activity cannot be conducted in Australia.

• An R&D tax offset will only be available for expenditure incurred on an activity conducted outside Australia if a finding that the activity cannot be conducted in Australia has come into force.

• The Board may also make a finding about whether particular technology is core technology for R&D activities.

• An effect of a finding that the technology is core technology for the R&D activities is that an R&D 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.

Subdivision B - Advance findings about the nature of activities