Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 7 - Functional currency  

SECTION 58J   TRANSLATION OF TAXABLE PROFIT, OR EXCESS CLOSING-DOWN EXPENDITURE, INTO AUSTRALIAN CURRENCY  

58J(1)    

If:

(a) paragraph 58D(1)(d) requires the translation of the taxable profit of a person of a financial year in relation to a petroleum project; or

(b) paragraph 58D(1)(e) requires the translation of an amount of excess closing-down expenditure for the purpose of working out a credit to which a person is entitled under section 46 in relation to a financial year;

that taxable profit or excess closing-down expenditure, as the case may be, is to be translated using:

(c) if the person elects to use an exchange rate that is an average of all the exchange rates during the financial year - that exchange rate; or

(d) if the person elects to use the exchange rate applicable on the last day of the financial year - that exchange rate.

58J(2)    
An election under paragraph (1)(c) or (d):

(a) must be in writing; and

(b) is irrevocable.

Default election

58J(3)    

If:

(a) either:

(i) paragraph 58D(1)(d) requires the translation of the taxable profit of a person of a financial year in relation to a petroleum project; or

(ii) paragraph 58D(1)(e) requires the translation of an amount of excess closing-down expenditure for the purpose of working out a credit to which a person is entitled under section 46 in relation to a financial year; and

(b) the person does not make an election under paragraph (1)(c) or (d) of this section in relation to the financial year;

the person is taken to have made an election under paragraph (1)(c) of this section in relation to the financial year.

Continuity of election

58J(4)    

If:

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

(b) that election is in effect for 2 or more consecutive financial years; and

(c) the person made an election under paragraph (1)(c) of this section in relation to the first of those financial years;

the person is taken to have made an election under paragraph (1)(c) of this section in relation to each remaining financial year.

58J(5)    

If:

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

(b) that election is in effect for 2 or more consecutive financial years; and

(c) the person made an election under paragraph (1)(d) of this section in relation to the first of those financial years;

the person is taken to have made an election under paragraph (1)(d) of this section in relation to each remaining financial year.

Designated company group - deemed election under paragraph (1)(c) etc

58J(6)    

If:

(a) a person has made an election under paragraph (1)(c) in relation to a financial year; and

(b) at the time when the person made the election, the person was the head company of a designated company group; and

(c) immediately before the end of the financial year, the person is the head company of a designated company group (the current designated company group );

then:

(d) each other company that was in the current designated company group immediately before the end of the financial year is taken to have made an election under paragraph (1)(c) in relation to the financial year; and

(e) an election covered by paragraph (d):

(i) is taken to have been in effect for the financial year; and

(ii) supersedes any previous election made by the other company that was in effect for the financial year.

58J(7)    

If:

(a) a person has made an election under paragraph (1)(c); and

(b) at the time when the person made the election, the person was the head company of a designated company group; and

(c) the election is in effect for a financial year; and

(d) during the financial year, the person ceased to be the head company of the designated company group; and

(e) immediately before the end of the financial year, another company is the head company of the designated company group;

then:

(f) the company covered by paragraph (e) of this subsection is taken to have made an election under paragraph (1)(c); and

(g) an election covered by paragraph (f) of this subsection:

(i) is taken to have been in effect for the financial year; and

(ii) supersedes any previous election made by the company that was in effect for the financial year; and

(h) each other company that was in the designated company group immediately before the end of the financial year is taken to have made an election under paragraph (1)(c); and

(i) an election covered by paragraph (h) of this subsection:

(i) is taken to have been in effect for the financial year; and

(ii) supersedes any previous election made by the other company that was in effect for the financial year.

58J(8)    

If:

(a) immediately before the end of a financial year, a person is the head company of a designated company group; and

(b) the person is not taken, under subsection (7), to have made an election under paragraph (1)(c) that is in effect for the financial year; and

(c) the person has not made an election under paragraph (1)(c) that:

(i) relates to the financial year; and

(ii) under subsection (6), results in each other company that was in the designated company group immediately before the end of the financial year being taken to have made an election under paragraph (1)(c); and

(d) a company that was in the designated company group immediately before the end of the financial year has made an election under paragraph (1)(c) in relation to the financial year;

the election covered by paragraph (c) of this subsection is taken not to have been in effect for the financial year.

Designated company group - deemed election under paragraph (1)(d) etc.

58J(9)    

If:

(a) a person has made an election under paragraph (1)(d) in relation to a financial year; and

(b) at the time when the person made the election, the person was the head company of a designated company group; and

(c) immediately before the end of the financial year, the person is the head company of a designated company group (the current designated company group );

then:

(d) each other company that was in the current designated company group immediately before the end of the financial year is taken to have made an election under paragraph (1)(d) in relation to the financial year; and

(e) an election covered by paragraph (d):

(i) is taken to have been in effect for the financial year; and

(ii) supersedes any previous election made by the other company that was in effect for the financial year.

59J(10)    

If:

(a) a person has made an election under paragraph (1)(d); and

(b) at the time when the person made the election, the person was the head company of a designated company group; and

(c) the election is in effect for a financial year; and

(d) during the financial year, the person ceased to be the head company of the designated company group; and

(e) immediately before the end of the financial year, another company is the head company of the designated company group;

then:

(f) the company covered by paragraph (e) of this subsection is taken to have made an election under paragraph (1)(d); and

(g) an election covered by paragraph (f) of this subsection:

(i) is taken to have been in effect for the financial year; and

(ii) supersedes any previous election made by the company that was in effect for the financial year; and

(h) each other company that was in the designated company group immediately before the end of the financial year is taken to have made an election under paragraph (1)(d); and

(i) an election covered by paragraph (h) of this subsection:

(i) is taken to have been in effect for the financial year; and

(ii) supersedes any previous election made by the other company that was in effect for the financial year.

58J(11)    

If:

(a) immediately before the end of a financial year, a person is the head company of a designated company group; and

(b) the person is not taken, under subsection (10), to have made an election under paragraph (1)(d) that is in effect for the financial year; and

(c) the person has not made an election under paragraph (1)(d) that:

(i) relates to the financial year; and

(ii) under subsection (9), results in each other company that was in the designated company group immediately before the end of the financial year being taken to have made an election under paragraph (1)(d); and

(d) a company that was in the designated company group immediately before the end of the financial year has made an election under paragraph (1)(d) in relation to the financial year;

the election covered by paragraph (c) of this subsection is taken not to have been in effect for the financial year.