Petroleum Resource Rent Tax Assessment Act 1987

PART VIII - COLLECTION AND RECOVERY OF TAX  

Division 2 - Collection by instalments  

SECTION 97   NOTIONAL TAX AMOUNT  

97(1)    
Subject to subsection (2) , the notional tax amount of a person, in relation to a petroleum project and an instalment period in a year of tax, is the amount worked out in accordance with the formula:

Current period liability − Previous period liability

where:

Current period liability means the amount worked out under subsection (1A) .

Previous period liability means the amount worked out under subsection (1B) .

97(1A)    
For the purposes of subsection (1) , the current period liability is an amount equal to the tax that would be payable by the person in relation to the petroleum project if:

(a)    the instalment period were the year of tax; and

(aa)    

without limiting paragraph (a) - any instalment transfers in relation to the instalment period were annual transfers in relation to the year of tax; and

(b)    

the amounts that were taken by subsections 33(3) , 34(3) , 34A(4) , 35(3) , 35C(5) , 35E(3) , 35F(2) and 36(1) (including because of section 48 ) to be incurred by the person in relation to the project on the first day of the year of tax were instead only the instalment percentages of those amounts; and

(c)    

the amounts that would, for the purposes of Schedule 1 , be the incurred exploration expenditure amounts in relation to financial years before the year of tax were instead only the instalment percentages of those amounts.

Note:

Division 3A of Part V may require or permit the transfer (by instalment transfer ) of transferable exploration expenditure in relation to instalment periods: see section 45E .

97(1AA)    

If the whole or a part of the assessable petroleum receipts that would be taken into account in working out the current period liability were determined under paragraph 24(1)(d) or (e) (the special calculation provisions ), then, in calculating the current period liability under subsection (1A):

(a)    any assessable petroleum receipts determined under the special calculation provisions are to be excluded; and

(b)    the amount worked out in accordance with the regulations in respect of those assessable petroleum receipts is to be included.

97(1B)    
For the purposes of subsection (1) , the previous period liability is an amount equal to the sum of the notional tax amounts (if any) worked out under subsection (1) in relation to the person, the petroleum project and any earlier instalment periods in the year of tax.

97(1BA)    

However, if a person was taken under subsection 22(3) or (4) to have a taxable profit in relation to the project and the financial year immediately preceding the year of tax, then:

(a)    subsection (1) of this section does not apply to the person in relation to the project and the year of tax; and

(b)    subject to subsection (2) of this section, the notional tax amount of the person, in relation to the project and an instalment period in the year of tax, is the tax that would, if the instalment period were a year of tax, be payable on the amount worked out in accordance with the formula:

(Current period receipts − Previous period receipts) × 0.1

where:

current period receipts
means:

(a) if the project is not a Greater Sunrise project - the assessable receipts derived by the person in relation to the project in the instalment period; or

(b) if the project is a Greater Sunrise project - the assessable receipts derived by the person in relation to the project in the instalment period multiplied by the apportionment percentage figure for the instalment period.

previous period receipts
means:

(a) if the instalment period is the first instalment period in the year of tax - nil; or

(b) if paragraph (a) does not apply - the current period receipts for the instalment period that ended most recently before the end of the instalment period.

97(1BB)    

For the purposes of subsection (1BA) , if the whole or a part of the assessable petroleum receipts that would be taken into account in working out the current period receipts were determined under paragraph 24(1)(d) or (e) (the special calculation provisions ), then, in calculating the current period receipts:

(a)    any assessable petroleum receipts determined under the special calculation provisions are to be excluded; and

(b)    the amount worked out in accordance with the regulations in respect of those assessable petroleum receipts is to be included.

97(1C)    

If the petroleum project is a combined project, the references in paragraph (1A)(b) and subsections (1B) and (1BA) to the project are to be read as including references to the pre-combination projects in relation to the project.

97(2)    

Where:

(a)    a person has not furnished information under section 98 in relation to an instalment of tax; or

(b)    the Commissioner is not satisfied with the information furnished by a person under section 98 in relation to an instalment of tax;

the Commissioner may determine that the notional tax amount of the person in respect of the period to which the instalment of tax relates is such amount that, in the opinion of the Commissioner, might reasonably be expected to be the notional tax amount, ascertained in accordance with subsection (1) or (1BA) , of the person in respect of the instalment period.

97(3)    
As soon as practicable after a determination is made under subsection (2) in relation to a person, the Commissioner shall cause notice of the determination to be served on the person.