ATO Guidance and Materials

ATO ID 2008/115 Income Tax Eligibility for Tax Offset: R&D tax offset and exempt entity ownership exception

August 20th, 2014

Does the exception in subsection 73J(2) of the Income Tax Assessment Act 1936 (ITAA 1936) apply, to prevent an eligible company choosing the tax offset under section 73I of the ITAA 1936, where the less than 25% exempt entity ownership requirement may not be breached if actual and potential future interests are taken into account? Yes. The exception in subsection 73J(2) of the ITAA 1936 applies if the interests actually owned, by an entity or entities referred to in the subsection, carry […]

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ATO ID 2006/328 Income Tax Capital Allowances: cost – ‘section 73BA depreciating asset’ – new full-scale test model – re-use of components from earlier test model

August 20th, 2014

Yes. The first element of cost of the new test model does include, pursuant to subsection 40-180(3) of the ITAA 1997, the cost attributed to those components of the earlier test model that have been re-used in building the new test model. The taxpayer is an ‘eligible company’, as defined in subsection 73B(1) of the Income Tax Assessment Act 1936 (ITAA 1936), that carries on ‘research and development activities’ (R&D activities) as defined in subsection 73B(1). The taxpayer has registered its R&D […]

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ATO ID 2006/327 Income Tax Capital Allowances: balancing adjustment event – ‘section 73BA depreciating asset’ – existing full-scale test model – discontinued use

August 20th, 2014

Does a balancing adjustment event occur under paragraph 40-295(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) for the existing full-scale test model of the taxpayer’s ‘section 73BA depreciating asset’ if the taxpayer discontinues use of the test model because it could not operate in the manner required? Yes. A balancing adjustment event does occur under paragraph 40-295(1)(b) of the ITAA 1997 for the existing test model of the taxpayer’s ‘section 73BA depreciating asset’ because the taxpayer stopped using the asset, […]

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ATO ID 2006/260 Income Tax Capital Allowances: cost – section 73BA depreciating asset – full-scale test model – refinement expenses

August 20th, 2014

Does the taxpayer’s capital expenditure on refining the full-scale test model of their ‘section 73BA depreciating asset’ form part of the asset’s cost for the purpose of working out the taxpayer’s ‘notional Division 40 deduction’ under section 73BC of the Income Tax Assessment Act 1936 (ITAA 1936)? Yes. The taxpayer’s capital expenditure on refining the full-scale test model of their ‘section 73BA depreciating asset’ does form part of the asset’s cost because the expenditure constitutes a second element of cost of the […]

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