ATO Guidance and Materials

ATO ID 2005/23 Income Tax Research and Development Tax Offset: legal ownership of interests in a company by an exempt entity

August 19th, 2014

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. […]

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ATO ID 2004/973 Income tax Research and Development: Additional deduction for incremental expenditure where a company has a transitional substituted accounting period in relation to the ‘deduction year’

August 19th, 2014

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 […]

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ATO ID 2004/871 Income Tax Research and Development: clawback (section 73C) for grants and recouped expenditure and the Pharmaceutical Industry Investment Program

August 19th, 2014

Must a company apply the ‘clawback’ provisions of section 73C of the Income Tax Assessment Act 1936 (ITAA 1936) to all or part of the payments received under the Pharmaceutical Industry Investment Program (PIIP)? Yes. The clawback provisions of section 73C of the ITAA 1936 apply to the research and development (R&D) component of PIIP payments received, as the requirements of subsection 73C(2) are satisfied. The taxpayer is an ‘eligible company’, as defined in subsection 73B(1) of the ITAA 1936, […]

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ATO ID 2004/808 Income Tax Research and Development: ‘group membership period’ and effect of viable business transfer

August 19th, 2014

Is a viable business transfer necessary for an eligible company to claim the research and development additional deduction under section 73Y of the Income Tax Assessment Act 1936 (ITAA 1936), where that company has:  deducted, under subsection 73B(13) or subsection 73B(14) of the ITAA 1936, an amount for incremental expenditure in the current year of income and in each of the preceding three years of income; and experienced a change in control during that time? No. An eligible company which has […]

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