ACIS Administration (Determination of Entitlement to Modulation Credit between Participants) Rules 2004

ACIS Administration (Determination of Entitlement to Modulation Credit between Participants) Rules 2004 I, Ian Elgin MacFarlane, Minister for Industry, Tourism and Resources, make these Rules under subsection 10 (2) of the ACIS Administration Act 1999 . Dated 30 th August 2004 Ian Macfarlane IAN MACFARLANE Minister for Industry, Tourism and Resources Contents 1 Name of Rules 1 2 Commencement 1 3 Object 2 4 Definition 2 5 Identifying the participant to whom the credit will be issued 2 6 If more than 1 participant is entitled to the credit 3 1 Name of Rules These Rules are the ACIS Administration (determination of Entitlement to Modulation Credit between Participants) Rules 2004 . 2 Commencement These Rules commence on the date of their notification in the Gazette . 3 Object The object of these Rules is to identify, if more than 1 participant is involved in a transaction giving rise to the issue of: modulated credit; or unmodulated uncapped production credit; or unmodulated type J investment credit; which participant is entitled to that credit. Note If the Regulations make it clear that only 1 participant involved in a transaction is entitled to claim the credit, there is no need to use these Rules. For example, under subregulation 13G of the Regulations, an ACIS participant that is not a motor vehicle producer cannot claim credits for research and development undertaken under a contract with another party. 4 Definition In these Rules: Regulations means the ACIS Administration Regulations 2000 . 5 Identifying the participant to whom the credit will be issued (1) The Secretary may require each participant involved in a transaction referred to in section 3: (a) to identify which of the participants is or are entitled to the credit arising from the transaction; and (b) if more than 1 participant is entitled to the credit – to identify the participant to which the credit should be issued . (2) If: (a) the participants identify only 1 participant as entitled to the credit; and (b) that participant meets the requirements of the Regulations in relation to the transaction; the credit must be issued to that participant. (3) If: (a) the participants identify more than 1 participant as entitled to the credit; and (b) each participant identifies the same participant to which the credit should be issued; and (c) that participant meets the requirements of the Regulations in relation to the transaction; the credit must be issued to that participant. (4) The Secretary may identify 1 participant, who meets the requirements of the Regulations in relation to the transaction, if: (a) not all the participants identify a participant that is entitled to the credit; or (b) the participants: (i) identify more than 1 participant as entitled to the credit arising from the transaction; and (ii) identify more than 1 participant to which the credit should be issued ; and the credit must be issued to that participant. 6 If more than 1 participant is entitled to the credit If a credit arises from a transaction mentioned in section 3 and more than 1 participant involved in the transaction is entitled to the credit, the credit must not be issued until: (a) each participant identifies: (i) the participants that are entitled to be issued with the credit; and (ii) the single participant to whom the credit should be issued ; or a participant has been identified under subsection 5 (4). Note Under subsection 10 (1) of the Act, the credit is to be paid to 1 participant only. However, for example , a joint venture between 2 motor vehicle producers could result in a transaction in which more that 1 participant is entitled to the credit.