INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10AA - Prospecting and mining for petroleum  

SECTION 124ADA   RESIDUAL CAPITAL EXPENDITURE  

124ADA(1)   [Ascertainment]  

For the purposes of this Division, but subject to the succeeding provisions of this section, the residual capital expenditure of a taxpayer as at the end of a year of income (in this section referred to as the relevant year of income ) shall be ascertained by deducting from the sum of:

(a) the amount of allowable capital expenditure (other than allowable capital expenditure to which paragraph (b) applies) incurred by the taxpayer after 17 August 1976 and before the end of the relevant year of income, being:

(i) expenditure incurred on or before 30 April 1981; or

(ii) expenditure incurred after 30 April 1981:

(A) under a contract entered into on or before 30 April 1981; or

(B) in respect of the construction of property by the taxpayer where that construction commenced on or before 30 April 1981; and

(b) any amount of allowable capital expenditure that is deemed by subsection (2) to have been incurred by the taxpayer on or before 30 April 1981,

the following amounts:

(c) any part of the expenditure included in that sum that:

(i) has been allowed or is allowable as a deduction under section 124ADB from the assessable income of a year of income preceding the relevant year of income; or

(ii) was incurred on property (not being property in respect of which a notice has been duly given to the Commissioner under section 124AB by the taxpayer and a person who acquired the last-mentioned property from the taxpayer) that has been disposed of, lost or destroyed or the use of which by the taxpayer for the purposes of carrying on prescribed petroleum operations has been otherwise terminated, and has not been allowed and is not allowable as a deduction from the assessable income of any year of income that ended before the year of income in which the disposal, loss, destruction or termination of use took place; and

(d) the sum of so much of any amounts specified in notices duly given to the Commissioner under section 124AB in relation to the acquisition from the taxpayer, during the relevant year of income or a preceding year of income, of a petroleum prospecting or mining right or petroleum prospecting or mining information as is attributable to expenditure that would, but for this paragraph, be included in the residual capital expenditure of the taxpayer as at the end of the relevant year of income.

124ADA(2)   [Commissioner's apportionment]  

Where:

(a) after 17 August 1976:

(i) the taxpayer has incurred allowable capital expenditure on property the use of which by the taxpayer for the purposes of carrying on prescribed petroleum operations has, before the relevant year of income, been terminated; or

(ii) the taxpayer has, otherwise than in carrying on prescribed petroleum operations, incurred expenditure of a capital nature on property, being expenditure that would have been allowable capital expenditure if it had been incurred in carrying on such operations,

being:

(iii) expenditure incurred on or before 30 April 1981; or

(iv) expenditure incurred after 30 April 1981:

(A) under a contract entered into on or before 30 April 1981; or

(B) in respect of the construction of property by the taxpayer where that construction commenced on or before 30 April 1981; and

(b) the property has, on or before 30 April 1981, come into use by the taxpayer for purposes for which allowable capital expenditure may be incurred,

so much of that expenditure as the Commissioner determines shall be deemed to have been incurred by the taxpayer in respect of that property, on the day on which the property so came into use by the taxpayer, for the purposes for which the property so came into use.

124ADA(3)   [Section 122N not prejudicial]  

Nothing contained in section 122N prejudices the operation of subsection (2).