Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 7 - Functional currency  

SECTION 58D   BASIC TRANSLATION RULES  

58D(1)    

If:

(a) a person has made an election under section 58B ; and

(b) that election is in effect for a financial year;

the following rules apply:

(c) first, for the purpose of working out the taxable profit of the person of the financial year in relation to a petroleum project:

(i) an amount that is not in the applicable functional currency is to be translated into the applicable functional currency; and

(ii) the definition of foreign currency in section 2 does not apply; and

(iii) the applicable functional currency is taken not to be a foreign currency; and

(iv) Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies;

(d) second, the taxable profit of the person of the financial year in relation to the petroleum project is to be translated into Australian currency;

(e) third, for the purpose of working out a credit to which the person is entitled under section 46 in relation to the financial year, an amount of excess closing-down expenditure is to be translated into Australian currency.

Examples of an amount

58D(2)    
The following are examples of an amount:

(a) an amount of an expense;

(b) an amount of an obligation;

(c) an amount of a liability;

(d) an amount of a receipt;

(e) an amount of a payment;

(f) an amount of consideration;

(g) a value.