Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 2 - Assessable receipts  

SECTION 27   ASSESSABLE PROPERTY RECEIPTS  

27(1)    
For the purposes of this Act, a reference to assessable property receipts derived by a person in relation to a petroleum project is a reference to:

(a) the consideration receivable by the person in respect of the disposal, loss or destruction of property in respect of which capital expenditure being eligible real expenditure in relation to the project (including in the case of a combined project any pre-combination project in relation to the project) was incurred by the person;

(b) the value of property in respect of which capital expenditure of a kind referred to in paragraph (a) was incurred by the person, as at the date of any other termination of the use of the property in relation to the project;

(c) the amount or value receivable by the person under a policy of insurance or otherwise in respect of damage to property in respect of which capital expenditure of a kind referred to in paragraph (a) was incurred by the person;

(d) any amount receivable by the person from the hiring or leasing out of, or the granting of rights to use, property that is or was also being used in relation to the project, being property in respect of which capital expenditure of a kind referred to in paragraph (a) was incurred by the person; or

(e) any amount receivable by the person from the provision of information obtained:

(i) from any survey, appraisal or study in respect of which eligible real expenditure in relation to the project (including in the case of a combined project any pre-combination project in relation to the project) was incurred by the person; or

(ii) otherwise as a result of the incurring by the person of such expenditure.

27(2)    
In paragraph (1)(a), a reference to the consideration in respect of the disposal, loss or destruction of property is a reference to:

(a) where the property is or was sold (whether with or without other property) for a specified price - the sale price of the property, less the expenses of the sale of the property, or less such part of the expenses of the sale of the property together with the other property as the Commissioner determines;

(b) where the property is or was sold with other property and a specified price is or was not allocated to the property - such part of the total sale price, less the expenses of the sale, as the Commissioner determines;

(c) where the property is or was disposed of otherwise than by sale - the value of the property at the date of disposal; or

(d) where the property is or was lost or destroyed - the amount or value receivable under a policy of insurance or otherwise in respect of the loss or destruction.

27(3)    

Any future closing-down expenditure in relation to licensed property and a petroleum project must be taken into account in working out the assessable property receipts derived by a person in relation to the project to the extent that the assessable property receipts are worked out under paragraph (1)(b) in relation to the termination of the use of the licensed property.

27(4)    

Assessable property receipts worked out under paragraph (1)(b) are taken to be zero if future closing-down expenditure taken into account under subsection (3) equals or exceeds what would have been those assessable property receipts if the future closing-down expenditure was not taken into account.

Note:

In this case, an extra amount may be included in the person's closing-down expenditure in relation to the project: see subsection 39(3) .