INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986 - SECT 28E Findings about whether technology is core technology

INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986 - SECT 28E

  (1)   If an R&D entity has acquired, or has acquired the right to use, particular technology wholly or partly for the purposes of one or more R&D activities conducted, or to be conducted, during one or more income years, the Board may:

  (a)   find that the technology is core technology for the R&D activities; or

  (b)   find that the technology is not core technology for the R&D activities; or

  (c)   if justified in accordance with the decision - making principles--refuse to make a finding about the technology and the R&D activities.

Note 1:   A finding, or a refusal to make a finding, is reviewable (see Division   5).

Note 2:   A finding under paragraph   (a) means that a tax offset will not be available for expenditure incurred in acquiring, or in acquiring the right to use, the technology for the R&D activities (see subsection   355 - 225(2) of the Income Tax Assessment Act 1997 ).

Note 3:   Section   32A deals with the decision - making principles.

  (2)   Particular technology is core technology for one or more R&D activities if:

  (a)   a purpose of the R&D activities was or is:

  (i)   to obtain new knowledge based on that technology; or

  (ii)   to create new or improved materials, products, devices, processes, techniques or services to be based on that technology; or

  (b)   the R&D activities were or are an extension, continuation, development or completion of the activities that produced that technology.

  (3)   The Board must make a finding under paragraph   (1)(a) or (b) if requested by the Commissioner to make a finding under this section.

  (4)   In addition to subsection   (3), the Board:

  (a)   may make a finding under subsection   (1) on its own initiative; and

  (b)   must make a decision under subsection   (1) if the R&D entity applies for a finding under this section.

Note:   For requirements of applications, see section   28G.

  (5)   This section has effect subject to section   32B (findings cannot be inconsistent with any earlier findings).