Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 5 - Effect of certain transactions  

SECTION 48A   TRANSFER ON OR AFTER 1 JULY 1993 OF PART OF ENTITLEMENT TO ASSESSABLE RECEIPTS  
Section applies to transfer of part of entitlement to assessable receipts

48A(1)    
This section applies if, on or after 1 July 1993, a person enters into a transaction that has the effect of transferring part only of the person ' s entitlement to derive, after the transfer, assessable receipts in relation to a petroleum project.

Definitions

48A(2)    
In this section:

(a) the person is called the vendor ;

(b) the person, or each of the persons, to whom the entitlement to derive assessable receipts is transferred is called a purchaser ;

(c) the time at which the transaction is entered into is called the transfer time ;

(d) the financial year in which the transaction is entered into is called the transfer year ;

(e) the part of the vendor ' s entitlement to derive assessable receipts that is being transferred, when expressed as a percentage of the whole of the vendor ' s entitlement to derive assessable receipts in relation to the project (as determined before the transfer time), is called the transfer percentage .

Transfer time may be before vendor ' s first year of tax

48A(3)    
The transfer time may be before the vendor ' s first year of tax in relation to the petroleum project.

Subsections (5) to (10) have effect for purposes of this Act

48A(4)    
If this section applies, subsections (5) to (10) have effect for the purposes of this Act (including this section).

Purchaser taken to have derived receipts, incurred expenditure etc

48A(5)    
The purchaser, or each of the purchasers in proportion to its acquired entitlement to assessable receipts, is taken:

(a) to have derived the transfer percentage of any assessable receipts that, if the transfer year had ended immediately before the transfer time, would have been assessable receipts derived by the vendor in relation to the project in the transfer year; and

(b) to have incurred the transfer percentage of any deductible expenditure (other than class 2 uplifted exploration expenditure or class 2 GDP factor expenditure), in relation to the project that, if the transfer year had ended immediately before the transfer time, would have been such deductible expenditure incurred by the vendor in relation to the project in the transfer year; and

(c) to have incurred, in relation to the project, the transfer percentage of any expenditure that, if the transfer year had ended immediately before the transfer time, would, within the meaning of Schedule 1 , have been included in the incurred exploration expenditure amount in relation to the vendor, the project and the transfer year or a previous financial year; and

Note:

This is expenditure on which class 2 uplifted exploration expenditure and class 2 GDP factor expenditure are based.

(ca) if section 35E did not apply immediately before the transfer time - to have incurred starting base expenditure, in relation to the project, of the transfer percentage of the starting base amount in relation to the vendor ' s interest; and

(d) to have incurred the transfer percentage of any liability of the vendor, and to have paid the transfer percentage of any amounts paid by the vendor, in respect of instalments of tax in relation to the project during the part of the transfer year that occurred before the transfer time.

Vendor taken not to have derived receipts, incurred expenditure etc

48A(6)    
The vendor is taken not to have derived, incurred or paid, as the case requires, the transfer percentage of the receipts, expenditure, liabilities and amounts to which subsection (5) applies.

Time when purchaser taken to have incurred expenditure to which paragraph (5)(c) applies

48A(7)    
Expenditure that the purchaser, or any of the purchasers, is taken by paragraph (5)(c) to have incurred is taken to have been so incurred at the time when the vendor incurred it, or is taken to have incurred it.

Time when purchaser taken to have incurred expenditure to which paragraph (5)(ca) applies

48A(7A)    

Expenditure that the purchaser, or any of the purchasers, is taken by paragraph (5)(ca) to have incurred is taken to have been so incurred in the first financial year in relation to which section 35E applies in relation to the project.

Treatment of property used in relation to the project

48A(8)    
As regards property used in relation to the project:

(a) the vendor is taken not to have derived any assessable property receipts in relation to the transaction because of the transfer of any property held by the vendor that was being used in relation to the project at the transfer time; and

(b) the purchaser or purchasers are taken not to have incurred any eligible real expenditure in relation to the transaction because of the transfer of any such property.

Application of sections 27 , 28 and 29

48A(9)    
In any application of section 27 , 28 or 29 after the transfer time, the purchaser, or each of the purchasers in proportion to its acquired entitlement to assessable receipts, is taken to have incurred the transfer percentage of any eligible real expenditure incurred by the vendor in relation to the project (including any pre-combination project in relation to the project).

Application of section 40

48A(10)    
In any application of section 40 after the transfer time, the purchaser, or each of the purchasers in proportion to its acquired entitlement to assessable receipts, is taken to have brought to account as a receipt of a kind referred to in section 24 , 25 , 27 , 28 or 29 in relation to the project (including any pre-combination project in relation to the project) the transfer percentage of any debt so brought to account by the vendor.

Transfer notice to be given to purchasers

48A(11)    

The vendor must give written notice of the transaction, in the approved form, to each purchaser before the end of the latest of the following days:

(a) the 60th day after the transfer time;

(b) the 60th day after the purchaser gives consideration for the transfer of the part of the entitlement;

(c) if the project is the North West Shelf project, and the transaction time occurred between 1 July 2012 and 30 June 2013 - 31 August 2013.

Note:

Subdivision 388-B in Schedule 1 to the Taxation Administration Act 1953 applies to approved forms under this subsection.