Commonwealth Consolidated Acts

INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986 - SECT 39EB

             (1)  The Board must, as soon as practicable (and, in any event, within 90 days) after the commencement of this section, formulate written guidelines setting out the criteria to be met by eligible companies wishing to obtain a provisional certificate under section 39ED in relation to overseas research and development activities proposed to be carried on by them as part of projects of research and development activities.

             (2)  The Board must cause the guidelines to be:

                     (a)  published in the Gazette ; and

                     (b)  made available on request, without charge, to any eligible company.

             (3)  The criteria to be set out in the guidelines must include the following criteria:

                     (a)  it must be shown that the proposed overseas research and development activities cannot be carried out in Australia or the external Territories;

                     (b)  it must be shown that the results of the overseas research and development activities will be exploited by the eligible company concerned for the benefit of the Australian economy;

                     (c)  it must be shown that the expenditure:

                              (i)  that is proposed to be incurred by the eligible company in respect of the overseas research and development activities; and

                             (ii)  in respect of which the company proposes to claim a deduction under section 73B, 73BA, 73BH or 73QA, or a tax offset under section 73I, of the Income Tax Assessment Act 1936 ;

                            will not exceed 10% of the total expenditure that the company has incurred or proposes to incur on the project of research and development activities.

          (3A)  The Board may, at any time, and whether or not within 90 days after the commencement of this Part, by writing, repeal, replace or amend guidelines made under subsection (1).

             (4)  An instrument formulating guidelines under subsection (1), or repealing, replacing or amending such guidelines, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.