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

30E   External review by AAT of internal review decisions

(1) Application may be made to the Administrative Appeals Tribunal for review of an internal review decision of the Board.

(2) Subsection 43(6) of the Administrative Appeals Tribunal Act 1975 has effect for the purposes of this Act and the Income Tax Assessment Act 1997 for:

(a) an internal review decision as varied by the Tribunal under section 43 of the Administrative Appeals Tribunal Act 1975; or

(b) a decision made by the Tribunal under that section in substitution for an internal review decision.

Note: This means that the varied or substituted decision takes effect from the day on which the reviewable decision took effect (see subsection 30D(5)).

(3) If an internal review decision is taken to be made under subsection 30D(3), section 29 of the Administrative Appeals Tribunal Act 1975 applies as if:

(a) paragraph 29(1)(d) of that Act applied to the internal review decision; and

(b) the prescribed time for the purposes of that paragraph were the end of the period of 28 days starting on the day on which the internal review decision is taken to be made.

(4) Despite section 35 of the Administrative Appeals Tribunal Act 1975:

(a) hearings of proceedings for review of an internal review decision are to be held in private; and

(b) during the proceedings, the Tribunal may, by order:

(i) give directions as to the persons who may be present during all or part of a hearing of the proceedings; and

(ii) give directions of a kind mentioned in paragraph 35(2)(aa), (b) or (c) of that Act.

Division 6 - Consolidated groups and MEC groups

31 Registrations and findings not effective for subsidiary members for group R&D activities

(1) An R&D entity’s registration under section 27A for an income year has no effect to the extent that the registration is for an activity conducted during a period that the R&D entity is a subsidiary member of a consolidated group or MEC group, of which the head company is an R&D entity.

Example: If an activity is conducted by the R&D entity during all of an income year, and part way through the income year the R&D entity becomes a subsidiary member of a consolidated group:

(a) the R&D entity can apply to be registered for the activity for the income year, and that registration will be effective in respect of the first part of the income year; and

(b) the head company of the group can apply to be registered for the activity for the income year in respect of the second part of the income year.

(2) If:

(a) a finding is made under this Part on application by an R&D entity that is a subsidiary member of a consolidated group or MEC group; and

(b) the head company of the group is also an R&D entity;

the finding has no effect to the extent that the finding is for an activity conducted during a period that the R&D entity is a subsidiary member of the group.