RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988
RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - TABLE OF PROVISIONS
TABLE OF PROVISIONS PART I-PRELIMINARYSection 1. Short title 2. Commencement PART II-AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 3. Principal Act 4. Officers to observe secrecy 5. Expenditure on research and development activities 6. Amendment of assessments 7. Application PART III-AMENDMENTS OF THE INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986 8. Principal Act 9. Amendment of title 10. Object of Act 11. Constitution of Board 12. Delegation by Board 13. Committees 14. Insertion of new section: 22A. Delegation by committee 15. Eligible companies 16. Insertion of new Part: PART IIIA-FUNCTIONS OF BOARD IN RELATION TO INCOME TAX CONCESSIONS 39A. Interpretation 39B. Related companies 39C. Exploitation otherwise than on normal commercial terms 39D. Exploitation otherwise than for the benefit of the Australian economy 39E. Adequate Australian content 39F. Registration of research agencies 39G. Cancellation of registration of research agencies 39H. Board to publicise particulars of registered research agencies 39J. Registration of eligible companies 39K. Grounds for refusal to register eligible companies 39L. Certificate as to research and development activities 39M. Certificate as to exploitation of results, or Australian content, of activities 39N. Certificate of non-compliance 39P. Joint registration 39Q. Copies of certificate to be given to companies affected 39R. Service of notices etc. 17. Confidentiality 18. Transitional RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - LONG TITLE
An Act to amend the Income Tax Assessment Act 1936 and the Industry Research and Development Act 1986, and for related purposes RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - PART I PART I-PRELIMINARY
RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 1 Short title
(Assented to 15 June 1988) 1. This Act may be cited as the Research and Development Legislation Amendment Act 1988. (Minister's second reading speech made in- House of Representatives on 28 April 1988 Senate on 24 May 1988) RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 2 Commencement
2. This Act commences, or shall be taken to have commenced, on 1 July 1988. RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - PART II PART II-AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936
RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 3 Principal Act
3. In this Part, "Principal Act" means the Income Tax Assessment Act 1936*1*. *1* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143,
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165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49, 51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984; No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123 and 168, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 49, 51, 52, 90, 109, 112 and 154, 1986; Nos. 23, 58, 61, 62, 108, 138, 139, 145 and 163, 1987; and No. 11, 1988. RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 4 Officers to observe secrecy
4. Section 16 of the Principal Act is amended: (a) by inserting after sub-subparagraph (4) (ga) (ii) (B) the following sub-subparagraph: "(BA) such information in relation to the business as the Australian Statistician requires for or in connection with the conduct of periodic surveys of research and development activities;"; (b) by inserting the following definition in subsection (4AA): " 'research and development activities' has the same meaning as in section 73B.". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 5 Expenditure on research and development activities
5. Section 73B of the Principal Act is amended: (a) by omitting from subsection (1) the definition of "contracted expenditure" and substituting the following definition: " 'contracted expenditure' means expenditure incurred by an eligible company: (a) during the deduction period-to the Coal Research Trust Account; (b) during the period commencing on 1 July 1985 and ending on 30 June 1988-to an approved research institute; or (c) during the period commencing on 20 November 1987 and ending at the end of the deduction period-to a body (not being an associate of the eligible company) that was, or is taken to have been, registered under section 39F of the Industry Research and Development Act 1986 when the expenditure was incurred as a research agency in respect of the class of research and development activities on which the expenditure was incurred; in consideration for that Trust Account funding the performance of, or that institute or agency performing, during the period concerned, research and development activities on behalf of the company;"; (b) by inserting after subsection (1A) the following subsections: "(1B) Expenditure referred to in paragraph (c) of the definition of 'contracted expenditure' in subsection (1) does not constitute contracted expenditure for the purposes of this section unless, when the expenditure was incurred, the eligible company that incurred the expenditure was capable of utilising, or had formulated a plan to utilise, any results of the research and development activities directly in connection with a business that that company carried on or proposed to carry on."; (c) by omitting from subsection (10) "under subsection (12) in relation to the year of income" and substituting "in relation to the year of income under section 39J or 39P of the Industry Research and Development Act 1986"; (d) by omitting subsections (11) and (12); (e) by omitting subsections (33), (34) and (35) and substituting the following subsections: "(33) Subject to subsection (33C), if the Board gives to the Commissioner a certificate under section 39M of the Industry Research and Development Act 1986 in respect of particular activities in respect of which expenditure has been incurred by a company, a deduction is not allowable, and shall be deemed never to have been allowable, under this section in respect of expenditure incurred by that company in respect of those activities.
"(33A) Subject to subsection (33C), if the Board gives to the Commissioner a certificate stating that a company has failed to comply with a notice under section 39N of the Industry Research and Development Act 1986 in respect of particular activities, a deduction is not allowable, and shall be deemed never to have been allowable, under this section in respect of expenditure incurred by that company in respect of those activities.
"(33B) Subject to subsection (33C), if the Board gives to the Commissioner a certificate in relation to a company or companies under subsection 39P (4) of the Industry Research and Development Act 1986, a deduction is not allowable under this section in respect of expenditure incurred by that company or any of those companies after the day on which notice was given to the company concerned under paragraph 39P (5) (a).
"(33C) If a certificate referred to in subsection (33), (33A) or (33B) is revoked, this section applies, and shall be deemed to have applied, as if the certificate had not been given.
"(34) If the Board gives to the Commissioner a certificate stating whether particular activities carried on by or on behalf of a specified eligible company were research and development activities, that certificate is binding on the Commissioner for the purpose of making an assessment of the company's taxable income of any year of income in which those activities were carried on.".
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RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 6 Amendment of assessments
6. Section 170 of the Principal Act is amended by omitting from subsection (10) "73B (8), (28), (30) or (33)" and substituting "73B (8), (28), (30), (33), (33A) or (33C)". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 7 Application
7. Section 73B of the Principal Act as amended by this Part applies to assessments made after the commencement of this Act in respect of income of any year of income. RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - PART III PART III-AMENDMENTS OF THE INDUSTRY RESEARCH AND DEVELOPMENT ACT 1986
RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 8 Principal Act
8. In this Part, "Principal Act" means the Industry Research and Development Act 1986*2*. *2* No. 89, 1986. RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 9 Amendment of title
9. The title of the Principal Act is amended by omitting "relating to financial assistance by the Commonwealth for" and substituting "to encourage". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 10 Object of Act
10. Section 3 of the Principal Act is amended by omitting "the provision of financial assistance for" and substituting "encouraging". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 11 Constitution of Board
11. Section 9 of the Principal Act is amended by omitting from paragraph (1) (c) "10" and substituting "13". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 12 Delegation by Board
12. Section 21 of the Principal Act is amended by inserting in subsection (1) ", a committee" after "another member". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 13 Committees
13. Section 22 of the Principal Act is amended by inserting after subsection (1) the following subsection: "(1A) In addition to providing advice to the Board as mentioned in subsection (1), a committee may exercise any powers delegated to it by the Board under subsection 21 (1).". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 14
14. After section 22 of the Principal Act the following section is inserted:
Delegation by committee "22A. (1) A committee may, by resolution, delegate to a member of the committee or to a member of the staff assisting the committee all or any of its powers under this Act (including, notwithstanding subsection 21 (1) and paragraph 34AB (b) of the Acts Interpretation Act 1901, a power delegated to the committee by the Board). "(2) A delegation of a power under this section: (a) may be revoked by a resolution of the committee (whether or not constituted by the persons constituting the committee when the power was delegated); and (b) continues in force notwithstanding a change in the membership of the committee. "(3) A certificate signed by the Chairperson of a committee stating any matter with respect to a delegation of a power under this section is evidence of that matter unless evidence to the contrary is given.
"(4) A document purporting to be a certificate mentioned in subsection (3) shall, unless the contrary is established, be taken to be such a certificate and to have been duly given.
"(5) In this section, a reference to the Chairperson of a committee is, if there is an acting Chairperson of the committee, a reference to the acting Chairperson of the committee.". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 15 Eligible companies
15. Section 27 of the Principal Act is amended by adding at the end of subsection (1) "other than Part IIIA". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 16
16. After Part III of the Principal Act the following Part is inserted:
"PART IIIA-FUNCTIONS OF BOARD IN RELATION TO INCOME TAX CONCESSIONS Interpretation "39A. (1) In this Part, unless the contrary intention appears: 'company' means any body corporate; 'dispose of' means dispose of in any way, including by assignment or declaration of trust; 'eligible company' means a body corporate incorporated under a law of the Commonwealth or of a State or Territory; 'register' means: (a) in relation to an eligible company: (i) register under section 39J; or
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(ii) register jointly with any other eligible company or eligible companies under section 39P; or (b) in relation to a research agency-register under section 39F; 'result', in relation to research and development activities, means a result that is capable of being exploited. "(2) Subject to subsection (1), expressions used in this Part that are defined by section 73B of the Income Tax Assessment Act 1936 have in this Part, unless the contrary intention appears, the same meanings as in that section.
"(3) Subject to subsections (1) and (2), expressions used in this Part that are defined by the Income Tax Assessment Act 1936 (other than section 73B) have in this Part, unless the contrary intention appears, the same meanings as in that Act.
Related companies "39B. For the purposes of this Part, the question whether 2 or more companies are related to each other shall be determined in the same way as that question would be determined for the purposes of the Companies Act 1981. Exploitation otherwise than on normal commercial terms "39C. The exploitation of a particular result of any activity shall be taken for the purposes of this Part to be an exploitation otherwise than on normal commercial terms if, in the opinion of the Board, any contract or transaction relating to that exploitation would not have been entered into, or contained terms that would not have been contained or would have been different, if the contract or transaction had been entered into by persons dealing with each other at arm's length and from positions of comparable bargaining power. Exploitation otherwise than for the benefit of the Australian economy "39D. (1) The exploitation of a particular result of an activity shall be taken for the purposes of this Part to be an exploitation otherwise than in a manner that is for the benefit of the Australian economy if, in the opinion of the Board, the profits or gains to residents of Australia accruing directly from the exploitation of a significant aspect of that result are not commensurate with the amount expended in the carrying on of that activity in Australia. "(2) In forming an opinion for the purposes of subsection (1), the Board may have regard to: (a) the value of the result of the activity; (b) the profits or gains to non-residents accruing directly from the exploitation of the result of the activity; (c) the amounts respectively expended in the carrying on of the activity inside and outside Australia; and (d) any other matters that the Board considers relevant. Adequate Australian content "39E. (1) The Board shall, as soon as practicable (and, in any event, within 90 days) after the commencement of this Part, formulate in writing guidelines to enable eligible companies to ascertain whether proposed research and development activities will be regarded as having an adequate Australian content for the purposes of this Part. "(2) The Board shall cause the guidelines to be published in the Gazette and made available on request, without charge, to any eligible company.
"(3) The Board may use as the basis of the guidelines any of the following matters, but is not limited to those matters: (a) the proportion of the total expenditure incurred in respect of particular activities that is to be incurred by residents of Australia; (b) the extent to which particular activities are to be carried out in Australia; (c) the extent to which particular activities are to be carried out by non-residents, whether the activities are to be carried out in Australia or not; (d) the extent to which particular activities will involve the use of imported plant or of knowhow or technology acquired outside Australia. "(4) The Board is not entitled, in relation to expenditure incurred by a company on particular activities, to give a certificate stating that it is of the opinion that those activities do not have an adequate Australian content if, at the time when the expenditure was incurred, the activities complied with the guidelines in force at that time.
"(5) An instrument formulating guidelines under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
Registration of research agencies "39F. (1) Any body of persons, whether corporate or unincorporate, may make an application to the Board in writing, in accordance with a form approved by the Board, for registration as a research agency for the purpose of performing a particular class of research and development activities on behalf of registered eligible companies. "(2) The Board shall, in consultation with the Commissioner, as soon as practicable (and, in any event, within 90 days) after the commencement of this Part, formulate in writing criteria to be met by bodies wishing to be registered under this section and shall cause the criteria so formulated to be made available to any person upon request, without charge, and to be published in the Gazette and in such other manner as the Board considers appropriate.
"(3) Where a body purported before the commencement of this Part to make an
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application to the Board for registration as a research agency, the application shall be taken to have been as valid as it would have been if this section has been in force when the application was made. "(4) Subject to subsection (9), where an application has been made in accordance with subsection (1) and the Board is satisfied that the applicant meets the criteria, the Board shall register the applicant as a research agency in respect of such class of research and development activities as the Board considers the applicant is qualified to perform and shall give to the applicant notice in writing of the result of the application.
"(5) The registration of a research agency shall be taken to have had effect on and from: (a) if the body concerned was, on 30 June 1988, an approved research institute-1 July 1988; or (b) otherwise-the date on which the application for registration was received by the Board. "(6) Subject to subsections (7) and (9), the Board may, on application made by a registered research agency in writing, in accordance with a form approved by the Board, vary the class of research and development activities in respect of which the agency is registered and shall give to the agency notice in writing of the result of the application.
"(7) The Board shall not vary the class of research and development activities in respect of which a research agency is registered so as to include additional activities unless the Board is satisfied that the agency is qualified to perform those additional activities.
"(8) The date of effect of such a variation is the date on which the variation is made to the register of research agencies.
"(9) Where the Board considers that it will be necessary for the purpose of dealing with an application under this section to make inquiries as to the applicant's qualifications to perform particular research and development activities, the Board may, before dealing with the application, require the applicant to pay such amount (not exceeding $1,000 or such higher amount as is prescribed) as the Board determines in or towards meeting the cost of the inquiries.
"(10) If the Board: (a) refuses an application to register a body as a research agency; or (b) refuses an application to register a body as a research agency in respect of, or to vary the registration of a body that is a registered research agency so as to include, particular research and development activities; the notice to the applicant stating the result of the application shall also state the reasons for the refusal. "(11) An instrument formulating criteria under subsection (2) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
Cancellation of registration of research agencies "39G. (1) The Board shall determine the grounds on which the registration of a research agency may be cancelled and shall cause the grounds so determined to be made available to any person upon request, without charge, and to be published in the Gazette and in such other manner as the Board considers appropriate. "(2) The grounds to be determined under subsection (1) shall include the failure of a research agency to meet a criterion formulated under subsection 39F (2).
"(3) Where the Board is of the opinion that a ground may exist for cancelling the registration of a research agency, the Board shall: (a) give notice in writing to the research agency stating that it is of that opinion and specifying particulars of the ground concerned; and (b) invite the research agency to make a written submission to the Board in relation to the matter within 90 days. "(4) If, after the end of that period or the receipt of a submission by the research agency, whichever first happens, and, if such a submission is received, after having regard to the matters raised in the submission, the Board is satisfied that the ground has been established, the Board may cancel the registration of the research agency.
"(5) If the Board cancels the registration of a research agency, the Board shall give notice in writing to the agency stating the reasons for the cancellation.
"(6) Except as provided by subsections (3) and (4), the Board may not cancel the registration of a research agency.
Board to publicise particulars of registered research agencies "39H. The Board shall: (a) cause the register of research agencies to be made available for inspection at any reasonable time by any person on request; and (b) cause to be published in each report of the Board under section 46 a list of the names of registered research agencies as at the end of the year to which the report relates and the classes of activities in respect of which those agencies are respectively registered. Registration of eligible companies "39J. (1) Where: (a) an eligible company applies to the Board for registration in respect of
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a year of income; (b) the company provides to the Board such information in relation to its research and development activities, or proposed research and development activities, as the Board reasonably requires; and (c) there are no grounds under section 39K on which the Board is entitled to refuse to register the company in respect of that year of income; the Board shall register the company in relation to that year of income. "(2) An application by, or a registration of, a company under subsection (1) may relate to a year of income that ended before the commencement of this Part.
"(3) Notwithstanding subsection (1), the Board may refuse to register a company in relation to a year of income unless the application is made after the end of that year of income.
"(4) The registration of a company in respect of a year of income is not invalid merely because a ground existed on which the Board was entitled to refuse to register the company in respect of that year of income.
"(5) The registration of a company in respect of a year of income is irrevocable.
"(6) If the Board refuses to register a company in respect of a year of income, the Board shall give notice in writing to the company stating the reasons for the refusal.
Grounds for refusal to register eligible companies "39K. (1) It is a ground on which the Board is entitled to refuse to register an eligible company in respect of a year of income that the activities that were, or are to be, carried on by or on behalf of the company in that year of income are not, or do not include, research and development activities. "(2) Subject to subsection (3), the regulations may specify other grounds on which the Board is entitled to refuse to register a company in respect of any year of income or in respect of a particular year of income or years of income.
"(3) The regulations may not specify a ground unless it relates to a matter the determination of which under this Part is a function of the Board.
Certificate as to research and development activities "39L. The Board may, and shall if requested in writing by the Commissioner to do so, give to the Commissioner a certificate stating whether particular activities that have been or are being carried on by or on behalf of an eligible company were or are research and development activities. Certificate as to exploitation of results, or Australian content, of activities "39M. (1) Where: (a) expenditure has been incurred by a company registered under section 39J or 39P: (i) on particular research and development activities; or (ii) in the acquisition or construction of plant or a building, or an extension, alteration or improvement to a building, for use in particular research and development activities; and (b) the Board is of the opinion that: (i) any of the results of those research and development activities have been exploited otherwise than: (A) on normal commercial terms; or (B) in a manner that is for the benefit of the Australian economy; or (ii) those research and development activities do not have an adequate Australian content; the Board may, subject to subsection 39E (4), give a certificate in writing to the Commissioner: (c) stating that it is of that opinion; (d) specifying the research and development activities concerned; and (e) giving the reasons for its opinion. "(2) The Board shall not give a certificate under this section in relation to a company unless the Board has: (a) given notice in writing to the company stating that it is considering giving the certificate, specifying the activities to which the certificate would relate and informing the company of the reasons why it is considering giving the certificate; (b) invited the company to make a written submission to the Board in relation to the matter within 90 days; and (c) if such a submission is made within that period, had regard to the matters raised in the submission. 40 Certificate of non-compliance "39N. (1) Where: (a) the Board requests a registered company to give to the Board particular information relating to activities carried on by or on behalf of the company, being information needed by the Board for the purpose of performing any of its functions, or the exercise of any of the powers, under this Part; and (b) the company does not give the information within a reasonable period; the Board may, by notice in writing to the company, require the company to give the information to the Board within 30 days after the notice is received by the company. "(2) If such a notice is given and the company fails to comply with the
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notice, the Board may give a certificate to the Commissioner stating that the company has failed to comply with a notice under this section in respect of the activities concerned. "(3) A notice under subsection (1) shall: (a) state that, if the company fails to comply with the notice within the period specified in the notice, the Board may give a certificate under subsection (2) in respect of the activities to which the notice relates; and (b) set out the terms of subsection 73B (33A) of the Income Tax Assessment Act 1936. Joint registration "39P. (1) A person may apply to the Board on behalf of 2 or more eligible companies for the joint registration of those eligible companies in respect of a year of income or years of income in relation to a proposed project or proposed projects comprising or including research and development activities. "(2) The application shall: (a) specify the companies concerned; (b) contain such particulars of the project, or each project, as the Board requires; (c) specify the total amount of the expenditure expected to be incurred by the companies in the year of income or years of income in respect of the research and development activities comprised or included in the project or projects; (d) specify, in respect of each company in relation to the research and development activities comprised or included in the project or each project, the amount of expenditure expected to be incurred in the year of income or each year of income in each of the following classes of expenditure: (i) research and development expenditure other than contract expenditure; (ii) plant expenditure; and (e) set out proposals for the exploitation of any results of the research and development activities. "(3) If the Board is of the opinion that: (a) the activities in respect of which the expenditure is proposed to be incurred are research and development activities; (b) at least one of the companies is not related to any of the others; (c) the total amount of the expenditure expected to be incurred as mentioned in paragraph (2) (c) will exceed $1,000,000; (d) one or more of the companies would not be able to utilise the results of the research and development activities in a business carried on by the company or companies concerned; (e) the total amount of the expenditure expected to be incurred by the company or companies referred to in paragraph (d) on research and development activities comprised or included in the project or projects will exceed $1,000,000; (f) the results of the research and development activities will be exploited: (i) on normal commercial terms; and (ii) in a manner that is for the benefit of the Australian economy; (g) the research and development activities will have an adequate Australian content; and (h) there are no grounds on which the Board would be entitled to refuse to register either or any of the companies in respect of the year of income or any of the years of income under section 39J if the companies had made separate applications for registration; the Board may register the companies jointly in respect of the year of income or the years of income. "(4) If, after registering companies jointly under subsection (3) in respect of a year of income or years of income, the Board becomes of the opinion that: (a) the whole or any part of the money paid by the companies has not been or is not being expended in respect of research and development activities; (b) any of the results of the research and development activities have not been, or will not be, exploited as mentioned in paragraph (3) (f); (c) the research and development activities do not, or will not, have an adequate Australian content; or (d) either or any of the companies has, before the completion of the project or projects in respect of which money paid by the company has been expended, disposed of to another person all or any of the company's rights in respect of the exploitation of any of the results of the relevant research and development activities, or an interest (whether legal or equitable) in all or any of those rights; the Board may give to the Commissioner a certificate stating that it is of that opinion. "(5) The Board shall not give a certificate under this section that affects a company or companies unless the Board has: (a) given notice in writing to the company or each company stating that the Board is considering giving the certificate and informing the company of its reasons for so considering; (b) given to the company or each company a reasonable opportunity to make a written submission in relation to the matter; and (c) if such a submission is made within a reasonable time, had regard to the matters raised in the submission. Copies of certificate to be given to companies affected "39Q. Where the Board gives to the Commissioner a certificate under this Part that affects a company, the Board shall at the same time serve a copy of the certificate on the company. Service of notices etc. "39R. A notice or other document that is required to be given to or served on a company under this Part may be given or served by sending to the company, by telegraph, telex, facsimile service or other similar means of communication, a message to the effect of the notice or other document.". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 17 Confidentiality
17. Section 47 of the Principal Act is amended by inserting in subsection (1) "or assisting a committee" after "assisting the Board". RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT ACT 1988 No. 59, 1988 - SECT 18 Transitional
18. (1) Expressions used in this section have, in this section, unless the contrary intention appears, the same meanings as in Part IIIA of the Principal Act as amended by this Part. (2) An eligible company that was, immediately before the commencement of this Act, registered under subsection 73B (12) of the Income Tax Assessment Act 1936 in relation to a year of income or years of income shall be taken after that commencement to be registered in relation to that year of income or those years of income under section 39J of the Industry Research and Development Act 1986.
(3) An application for registration that was made before the commencement of this Act under subsection 73B (12) of the Income Tax Assessment Act 1936 but had not been dealt with before that commencement shall be taken to have been made under section 39J of the Industry Research and Development Act 1986.