Petroleum Resource Rent Tax Assessment Act 1987

SCHEDULE 1 - PROVISIONS RELATING TO INCURRING AND TRANSFER OF EXPLORATION EXPENDITURE ON OR AFTER 1 JULY 1990  

Sections 2 , 35A , 35B , 45A , 45B and 45D

PART 4 - TRANSFERABLE EXPLORATION EXPENDITURE NOT INCURRED IN RELATION TO A PROJECT  

15   NON-TRANSFERABLE EXPENDITURE  

15(1)    
For the purposes of this Part, if:

(a) the person incurred exploration expenditure, or is taken to have incurred uplifted frontier expenditure, in relation to the notional project in a financial year; and

(b) the total amount of assessable receipts derived by the person in relation to the notional project in the financial year equals or exceeds the total amount of deductible expenditure actually incurred by the person in relation to the notional project in the financial year;

the total of the amounts of exploration expenditure (other than designated frontier expenditure), and uplifted frontier expenditure, is taken to be non-transferable expenditure incurred by the person in relation to the notional project.

15(2)    
For the purposes of this Part, if:

(a) the total amount of deductible expenditure actually incurred by the person in relation to the notional project in a financial year exceeds the total amount of assessable receipts derived by the person in relation to the notional project and the financial year; and

(b) the total of:

(i) any amounts of exploration expenditure (other than designated frontier expenditure) actually incurred by the person; and

(ii) any amounts of uplifted frontier expenditure taken to be incurred by the person in respect of designated frontier expenditure actually incurred by the person;

in relation to the notional project in the financial year exceeds the excess referred to in paragraph (a) by an amount (the non-transferable amount );

so much of the expenditure as equals the non-transferable amount is taken to be non-transferable expenditure incurred by the person in relation to the notional project.

15(3)    
If:

(a) subclause (2) applies; and

(b) the oldest amount of any exploration expenditure (other than designated frontier expenditure) incurred, or any uplifted frontier expenditure taken to be incurred, by the person in the financial year equals or exceeds the non-transferable amount;

the non-transferable expenditure consists of so much of that oldest amount as equals the non-transferable amount.

15(4)    
If:

(a) subclause (2) applies; but

(b) subclause (3) does not apply;

the following provisions have effect:

(c) add amounts in accordance with the following rules:

(i) start with the oldest amount of any exploration expenditure (other than designated frontier expenditure) incurred, or any uplifted frontier expenditure taken to be incurred, by the person in the financial year;

(ii) add to that, in order starting with the next oldest amount, each of the other amounts incurred, or taken to be incurred, by the person in the financial year;

(iii) if adding an amount of expenditure would make the total exceed the non-transferable amount, add only so much of the amount as makes the total equal the non-transferable amount and do not add any later amount of expenditure;

(d) the non-transferable expenditure consists of the amounts of expenditure added together in accordance with paragraph (c).