Section DB 37 — Income Tax Act 2007: Expenses of failed or withdrawn patent application

DB 37 Expenses of failed or withdrawn patent application Deduction (1) A person who applies for the grant of a patent and is refused the grant or withdraws the application is allowed a deduction for expenditure— (a) that the person incurs in relation to the application; and (b) that would have been part of the cost of fixed life intangible property if the application had been granted; and (c) for which the person is not allowed a deduction under another provision. Timing of deduction (2) The deduction is allocated to the income year in which the grant is refused or the application is withdrawn. Link with subpart DA (3) This section overrides the capital limitation. The general permission and other general limitations still apply. Defined in this Act: capital limitation , deduction , fixed life intangible property , general limitation , general permission , income year , Compare: 2004 No 35 s DB 28B