(1) Section 766 of the Principal Act is amended -

(a) in subsection (1)(a) -

(i) by inserting the following after the definition of "appropriate inspector":

"'authorised officer' means an officer of the Revenue Commissioners authorised by them in writing for the purposes of this section;",

and

(ii) in the definition of "expenditure on research and development" by inserting "wholly and exclusively" after "incurred by the company",

(b) by inserting the following after subsection (1):

"(1A)

(a) Where expenditure is incurred by a company on machinery or plant which qualifies for any allowance under Part 9 or this Chapter and the machinery or plant will not be used by the company wholly and exclusively for the purposes of research and development, the amount of the expenditure attributable to research and development shall be such portion of that expenditure as appears to the inspector (or on appeal the Appeal Commissioners) to be just and reasonable, and such portion of the expenditure shall be treated for the purposes of subsection (1)(a) as incurred by the company wholly and exclusively in carrying on research and development activities.