Income tax: is the allotment of shares as consideration for services performed by another party on research and development activities expenditure incurred under section 73B of the Income Tax Assessment Act 1936 (ITAA)?

Taxation Determination TD 93/233 is withdrawn with effect from today.

Whether or not there is 'expenditure incurred' under section 73B depends on whether there is expenditure actually made or expenditure arising from a presently existing liability. This point was not made sufficiently clear in the Taxation Determination. Further, the question is one to be determined on the facts of each case, and it is not possible to cover all the relevant principles and their application to various factual situations in a Taxation Determination.

Taxpayers requiring advice on this matter can apply for a private ruling.