Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 6 - Anti-avoidance  

Subdivision B - Non-arm's length transactions  

SECTION 57   NON-ARM ' S LENGTH RECEIPTS  

57(1)    
Where:

(a) under a transaction, a person has derived receipts of a kind referred to in section 23 in relation to a petroleum project;

(b) the Commissioner, having regard to any connection between the parties to the transaction or to any other relevant circumstances, is satisfied that the transaction is not an arm ' s length transaction;

(c) the amount of the receipts is less than the amount (in this subsection referred to as the increased receipts ) that could reasonably have been expected to have been the amount of those receipts if the transaction had been an arm ' s length transaction; and

(d) the Commissioner determines that this subsection should apply in relation to the person in relation to the transaction;

then, for the purposes of the application of this Act in relation to the person in relation to the transaction, the amount of the receipts derived by the person shall be taken to be equal to the increased receipts.

57(2)    
Where:

(a) under a transaction, a person has not derived receipts of a kind referred to in section 23 in relation to a petroleum project;

(b) the Commissioner, having regard to any connection between the parties to the transaction or to any other relevant circumstances, is satisfied that the transaction is not an arm ' s length transaction;

(c) it could reasonably have been expected that if the transaction had been an arm ' s length transaction the person would have derived an amount (in this subsection referred to as the notional receipts ) of receipts of such a kind in relation to the petroleum project; and

(d) the Commissioner determines that this subsection should apply in relation to the person in relation to the transaction;

then, for the purposes of the application of this Act in relation to the person in relation to the transaction, the person shall be taken to have derived under the transaction receipts of the kind referred to in paragraph (c) in relation to the project of an amount equal to the notional receipts.

57(3)    

This section does not apply to receipts determined under paragraph 24(1)(d) .