ATO Guidance and Materials

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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ATO ID 2004/703 Income tax Research and Development: ‘R&D group turnover’ – supplies made in the course of carrying on business

August 19th, 2014

In calculating the ‘value of supplies’ under paragraph 73K(1)(b) of the Income Tax Assessment Act 1936 (ITAA 1936) of the definition of ‘R&D group turnover’, for a company that has carried on a business of acting as a lender in providing mortgage loans, is the amount received for the assignment of its loan portfolio a supply made ‘in the course of carrying on a business’ in the terms of the definition of ‘value of supplies’ in sub-section 73H(2) of the ITAA 1936? […]

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ATO ID 2004/702 Income tax Research and Development: ‘R&D group turnover’ – value of supplies made in the year of income – interest payments

August 19th, 2014

In calculating the ‘value of supplies’ under paragraph 73K(1)(b) of the definition of ‘R&D group turnover’, in the Income Tax Assessment Act 1936 (ITAA 1936), for a company that conducts business as a lender, are amounts of interest in respect of loans that were settled in a prior year of income, as well as interest in respect of loans that were settled in the current year of income, included? Yes. The ‘value of supplies’ under paragraph 73K(1)(b) of the definition of ‘R&D […]

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