Where an eligible company chooses not to deduct an amount of core technology expenditure under subsection 73B (12A) of the Income Tax Assessment Act 1936 (ITAA 1936), is the amount included in the company’s ‘aggregate research and development amount’ as defined in subsection 73B(1) of the ITAA 1936? Yes. The amount allowable as a deduction under subsections 73B(12) or (12A) of the ITAA 1936 for core technology expenditure is included in the ‘aggregate research and development amount’ of an eligible company. The […]
Where an eligible company is controlled by a person in a capacity as trustee, is the ‘value of supplies’ made by this person, as defined by subsection 73H(2) of the Income Tax Assessment Act 1936 (ITAA 1936), based only on those supplies made by it as trustee? Yes. The ‘value of supplies’ made by the person in its capacity as trustee, to be included in the ‘R&D group turnover’ of the eligible company under section 73K of the ITAA 1936, is based […]
Does an exempt entity legally own interests in a company within the meaning of subsection 73J(2) of the Income Tax Assessment Act 1936 (ITAA 1936), where the Corporations Act 2001 requirements for membership of a company have not been met? No. The exception in subsection 73J(2) of the ITAA 1936 will not operate to preclude a company from choosing a tax offset under section 73I of the ITAA 1936 where the exempt entity is not a member of the company under the Corporations Act. […]
If an eligible company lodges a return of income for a period other than 12 months, will this period represent the ‘year of income’ (the ‘deduction year’ ) for the purposes of determining the company’s eligibility to claim an additional deduction for incremental expenditure, and also represent the ‘Y0 year’ when calculating ‘R&D spend’? No. The ‘deduction year’ for the purposes of section 73Q of the Income Tax Assessment Act 1936 (ITAA 1936), and the ‘Y0 year’, when calculating the ‘R&D spend’ under section 73P of the ITAA […]