Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 6 - Anti-avoidance  

Subdivision A - Arrangements to obtain tax benefits  

SECTION 51A   THE BASES FOR IDENTIFYING TAX BENEFITS  

51A(1)    
This section applies to deciding, under section 51 , whether any of the following ( tax effects ) would have occurred, or might reasonably be expected to have occurred, if an arrangement had not been entered into or carried out:

(a)    an amount of assessable receipts being derived by the person in relation to a petroleum project;

(b)    an amount of deductible expenditure not being incurred by the person in relation to a petroleum project.

51A(2)    
A decision that a tax effect would have occurred if the arrangement had not been entered into or carried out must be based on a postulate that comprises only the events or circumstances that actually happened or existed (other than those that form part of the arrangement).

51A(3)    
A decision that a tax effect might reasonably be expected to have occurred if the arrangement had not been entered into or carried out must be based on a postulate that is a reasonable alternative to entering into or carrying out the arrangement.

51A(4)    
In determining for the purposes of subsection (3) whether a postulate is such a reasonable alternative:

(a)    have particular regard to:


(i) the substance of the arrangement; and

(ii) any result or consequence for the person that is or would be achieved by the arrangement (other than a result in relation to the operation of this Act); but

(b)    disregard any result in relation to the operation of this Act that would be achieved by the postulate for any person (whether or not a party to the arrangement).




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