Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 7 - Functional currency  

SECTION 58M   SPECIAL TRANSLATION RULES - EVENTS THAT HAPPENED BEFORE THE WITHDRAWAL OF AN ELECTION TOOK EFFECT  
Certain expenditure incurred on the day when section 58B election takes effect

58M(1)    

If:

(a) a person withdraws an election under section 58B with effect from immediately after the end of a financial year; and

(b) the person does not make a fresh election under section 58B with effect from the start of the next financial year; and

(c) any of the following subparagraphs applies:

(i) under subsection 33(3) , an amount is taken to be class 1 augmented bond rate general expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year;

(ii) under subsection 34(3) , an amount is taken to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year;

(iii) under subsection 34A(4) , an amount is taken to be class 2 uplifted general expenditure incurred by the person on the first day of the next financial year;

(iv) under subsection 35C(5) , an amount is taken to be resource tax expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year;

(v) (Repealed by No 43 of 2019)

(vi) under subsections 35E(1) and (1B) , or under subsection 35E(3) , an amount is taken to be starting base expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year;

(vii) the person has a starting base amount in relation to an interest in a petroleum project; and

(d) section 10 requires that the amount be translated into Australian currency;

the amount is to be translated into Australian currency at the exchange rate applicable at the start of the next financial year.

Class 2 uplifted exploration expenditure, class 2 GDP factor expenditure and transferable exploration expenditure

58M(2)    

For the purpose of working out:

(a) the class 2 uplifted exploration expenditure; or

(b) the class 2 GDP factor expenditure; or

(c) the transferable exploration expenditure;

that a person is taken to have incurred in a financial year in relation to a petroleum project, if:

(d) a person withdraws an election under section 58B with effect from immediately after the end of an earlier financial year; and

(e) the person has not made an election under section 58B with effect from the start of an intervening financial year; and

(f) section 10 requires that an amount of expenditure be translated into Australian currency; and

(g) the expenditure was actually incurred before the withdrawal of the election took effect;

the expenditure is to be translated into Australian currency at the exchange rate applicable at the start of the next financial year after that earlier financial year.