Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 5 - Effect of certain transactions  

SECTION 48   TRANSFER OF ENTIRE ENTITLEMENT TO ASSESSABLE RECEIPTS  

48(1A)    

This section applies if:

(a) at a particular time (the transfer time ) a person (the vendor ) enters into a transaction in relation to a petroleum project; and

(b) the transaction has the effect of transferring to another person or persons (the purchasers ):

(i) the whole of the vendor ' s entitlement to derive, after the transaction, assessable receipts in relation to the project; and

(ii) any property held by the vendor that is being used in relation to the project; and

(c) the purchasers give consideration for the entitlement and property.

The transaction may occur at any time (even before the vendor ' s first year of tax in relation to the project).

48(1)    

For the purposes of this Act (including this section):

(a) the purchaser, or each of the purchasers in proportion to his or her acquired entitlement to those receipts, shall be taken:

(i) to have derived any assessable receipts, and to have incurred any deductible expenditure (other than class 2 uplifted exploration expenditure or class 2 GDP factor expenditure), in relation to the project that, if the financial year in which the transaction is or was entered into had ended immediately before the transfer time, would have been assessable receipts derived, or such deductible expenditure incurred, by the vendor in relation to the project in that financial year; and

(ia) to have incurred, in relation to the project, any expenditure that, if the financial year in which the transaction is or was entered into had ended immediately before the transfer time, would, within the meaning of Schedule 1 , have been included in the incurred exploration expenditure amount in relation to the vendor, the project and the financial year or a previous financial year; and

Note:

this is expenditure on which class 2 uplifted exploration expenditure and class 2 GDP factor expenditure are based.

(ib) if section 35E did not apply immediately before the transfer time - to have incurred starting base expenditure, in relation to the project, of the starting base amount in relation to the vendor ' s interest; and

(ii) to have incurred any liability of the vendor, and to have paid any amounts paid by the vendor, in respect of instalments of tax in relation to the project during the part of the financial year in which the transaction is or was entered into occurring before the transfer time;

(b) the vendor shall be taken not to have derived those receipts, incurred that expenditure or that liability or paid those amounts, as the case may be;

(c) the vendor shall be taken not to have derived any assessable property receipts in relation to the transaction by reason of the transfer of any property held by the vendor that was being used in relation to the project at the transfer time;

(d) the purchaser or purchasers shall be taken not to have incurred any eligible real expenditure in relation to the transaction by reason of the transfer of any such property;

(e) in any application of section 27 , 28 or 29 after the transfer time, the purchaser shall be taken to have incurred any eligible real expenditure incurred by the vendor in relation to the project (including in the case of a combined project any pre-combination project in relation to the project); and

(f) in any application of section 40 after the transfer time, the purchaser shall be taken to have brought to account as a receipt of a kind referred to in section 24 , 25 , 27 , 28 or 29 in relation to the project (including any pre-combination project in relation to the project) any debt so brought to account by the vendor.

48(2)    
Expenditure that the purchaser, or a purchaser, is taken to have incurred by subparagraph (1)(a)(ia) is taken to have been so incurred at the time when the vendor incurred it, or is taken to have incurred it.

48(2A)    

Expenditure that the purchaser, or a purchaser, is taken to have incurred by subparagraph (1)(a)(ib) is taken to have been so incurred in the first financial year in relation to which section 35E applies in relation to the project.

48(3)    

The vendor must give written notice of the transaction, in the approved form, to each purchaser before the end of the latest of the following days:

(a) the 60th day after entering into the transaction;

(b) the 60th day after the purchasers give consideration for the entitlement and property;

(c) if the project is the North West Shelf project, and the transaction was entered into between 1 July 2012 and 30 June 2013 - 31 August 2013.

Note:

Subdivision 388-B in Schedule 1 to the Taxation Administration Act 1953 applies to approved forms under this subsection.