Home » News » Taxation Ruling: TR 2013/3A1 – Addendum

Taxation Ruling: TR 2013/3A1 – Addendum

September 7th, 2015

Summary of 104 106 689 matter

Taxation Ruling – TR2013/3 Click Here
 GHP 104 160 689 Pty Ltd v. Commissioner of Taxation Click Here
Decision Impact Statement – GHP 104 160 689 Pty Ltd Click Here

*This must be read in conjunction with the original Taxation Ruling – TR2013/3

Following the AAT decision in GHP 104 160 689 Pty Ltd v. Commissioner of Taxation, an amendment has been made to the Taxation ruling TR 2013/3 to remove the discussion on the inclusion of goods or materials consumed during R&D activities from the meaning of feedstock input expenditure. This Addendum is a public ruling for the purposes of the Taxation Act 1953.

TR 2013/3 is amended as follows by the Addendum:

1. Footnote 8

Omit the footnote; substitute:

There is a distinction between goods or materials that are the subject of transformation or processing during R&D activities and those that subject those goods or materials to transformation or processing; see further, paragraph 18 of this Ruling.

2. Paragraph 18

Omit the paragraph; substitute:

However, subject to paragraphs 23 to 28 of this Ruling, the first condition does not apply to expenditure on the transformation or processing activities themselves. This limitation is consistent with the fact that where section 355-465 intends to bring such expenditure into the calculation of a feedstock adjustment it does so expressly; and then only where it is incurred on energy input directly into transformation or processing; see subparagraph 355-465(1)(b)(ii). This limitation also applies to expenditure on goods and materials which are merely acquired or created to subject other goods and materials to transformation or processing during R&D activities. Such items represent a cost of the process of transforming or processing other goods or materials, rather than something to be transformed or processed in their own right.

3. Footnote 22

After the first sentence; insert:  See GHP 104 160 689 Pty Ltd v. Commissioner of Taxation [2014] AATA 515; 2014 ATC 10-373 at paragraphs 328-348.

4. Paragraph 174

At the end of the paragraph; insert: 71A See GHP 104 160 689 Pty Ltd v. Commissioner of Taxation [2014] AATA 515; 2014 ATC 10-373 at paragraphs 328-348.

5. Case references

Insert: GHP 104 160 689 Pty Ltd v. Commissioner of Taxation [2014] AATA 515; 2014 ATC 10-373

This Addendum applies on and from 1 July 2014.

Click here for the TR2013/3A1 Addendum


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