Petroleum Resource Rent Tax Assessment Act 1987

PART VI - RETURNS AND ASSESSMENTS

Division 2 - Assessments (general)

History

Div 2 substituted by No 78 of 2006, s 3 and Sch 4 item 10, applicable only in relation to returns and assessments of tax, and instalments of tax, under the Petroleum Resource Rent Tax Assessment Act 1987 for financial years that start on or after 1 July 2006. Div 2 formerly read:

Division 2 - Assessments

SECTION 62 SECTION 62 ASSESSMENTS
62
The Commissioner shall, from the returns, and from any other information in the possession of the Commissioner, make an assessment of the amount of the taxable profit of any person in relation to a petroleum project, and of the tax payable on that amount.
SECTION 63 SECTION 63 DEFAULT ASSESSMENTS
63
Where:

(a) a person makes default in furnishing a return;

(b) the Commissioner is not satisfied with the return made by a person; or

(c) the Commissioner has reason to believe that a person who has not furnished a return is liable to pay tax;
the Commissioner may make an assessment of the taxable profit upon which, in the opinion of the Commissioner, tax is payable by that person, and of the amount of that tax.
SECTION 64 AMENDMENT OF ASSESSMENTS
64(1)
The Commissioner may, at any time within 3 years from the date on which tax became due and payable under an assessment, amend the assessment by making such alterations or additions to it as the Commissioner thinks necessary.

64(2)
Subject to this section, the Commissioner may, after the end of 3 years from the date on which tax became due and payable under an assessment, amend the assessment by making such alterations or additions to it as the Commissioner thinks necessary.

64(3)
Where:

(a) a person does not make a full and true disclosure of all the material facts necessary for an assessment of the tax payable by the person;

(b) the Commissioner makes an assessment; and

(c) there is an avoidance of tax;
the Commissioner may:

(d) where the Commissioner is of the opinion that the avoidance of tax is due to fraud or evasion - at any time; and

(e) in any other case - within 6 years from the date on which tax became due and payable under the assessment;
amend the assessment by making such alterations or additions to it as the Commissioner thinks necessary.

64(4)
No amendment effecting a reduction in the liability of a person under an assessment shall be made after the end of 3 years from the date on which tax became due and payable under the assessment.

64(5)
Where an assessment has been amended under this section in any particular, the Commissioner may, within 3 years from the date on which tax became due and payable under the amended assessment, make, in or in respect of that particular, such further amendment of the assessment as, in the Commissioner's opinion, is necessary to effect such reduction in the liability of the person liable to pay tax under the assessment as is just.

64(6)
Where a person:

(a) applies, within 3 years from the date on which tax became due and payable under an assessment, for an amendment of the assessment; and

(b) supplies to the Commissioner within that period all information needed by the Commissioner for the purposes of determining the application;
the Commissioner may amend the assessment, notwithstanding that that period has expired.

64(7)
Nothing in this section prevents the amendment of an assessment:

(a) in order to give effect to a decision on a review or appeal;

(b) by way of reduction in any particular pursuant to an objection made under this Act or pending a review or appeal; or

(c) in order to give effect to the provisions of section 5 , 20 , 45A , 45B or 45C .

64(8)
The Commissioner may, at any time, amend an assessment of additional tax under Part IX .
SECTION 65 PAYMENT OF THE GENERAL INTEREST CHARGE WHERE ASSESSMENT AMENDED
65(1)
Subject to this section, where an amendment of an assessment increasing the liability of a person to tax is made, the person is liable to pay the general interest charge for each day in the period in subsection (4), on the amount (in this section referred to as the principal amount ) by which the tax payable by the person under the amended assessment exceeds the tax payable by the person under the assessment that was amended.
Note: The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 .

65(2)
Where:

(a) but for this subsection, general interest charge would be payable by a person under subsection (1) in respect of the principal amount; and

(b) the person is liable to pay, or would, but for subsection 8ZE(1) of the Taxation Administration Act 1953 or subsection 104(3) of this Act, be liable to pay, additional tax under Part IX (other than section 101 ) of this Act in respect of the matter to which the principal amount, or part of the principal amount, relates;
general interest charge is not payable by the person under subsection (1) in respect of the principal amount or the part of the principal amount, as the case may be.

65(3)
Where:

(a) a person is liable to pay, or would, but for subsection (11), be liable to pay, general interest charge under subsection (1) on an amount (in this subsection referred to as the base amount ), being the whole or a part of the principal amount; and

(b) as a result of the amendment by virtue of which the interest became payable, an amendment of an assessment is made increasing the liability of the person to additional tax under Part IX ;
the person is liable to pay general interest charge for each day in the period in subsection (4), on the amount ascertained in accordance with the formula AB/C where:

A is so much of the additional tax payable by the person under the amended assessment as is attributable to the amendment by virtue of which the general interest charge referred to in paragraph (a) became payable;

B is the number of whole dollars in the base amount; and

C is the number of whole dollars in the principal amount.

65(4)
The general interest charge payable by a person under subsection (1) or (3) in relation to an amended assessment (in this subsection referred to as the current amended assessment ) in relation to a petroleum project in respect of a year of tax is payable for each day in the period that:

(a) started at the beginning of:

(i) in a case to which subsection (1) applies - the day on which tax became due and payable by the person under the first assessment in relation to the petroleum project in respect of the year of tax; or

(ii) in a case to which subsection (3) applies - the day on which additional tax under Part IX became due and payable by the person under the assessment referred to in paragraph (3)(b) or, if that assessment was previously amended on one or more occasions, under that assessment before any amendment; and

(b) finishes at the end of the day before the current amended assessment is made.

65(5)
(Repealed by No 44 of 2000)
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History

S 65(5) repealed by No 44 of 2000, s 3 Sch 3 item 39, effective 1 July 2000. Despite the repeal of subsec (5), that subsection continues to have effect in relation to an exercise of the Commissioner's power under s 84 before 1 July 2000. S 65(5) formerly read:

65(5)
Where, under section 84 , the Commissioner:

(a) has granted an extension of time for payment of tax or of additional tax under Part IX ; or

(b) has permitted payment of tax, or additional tax under Part IX , to be made by instalments;
that tax or additional tax shall be deemed, for the purposes of this section, to have become due and payable on such date as the Commissioner determines, not being a date before the date on which the tax or additional tax was originally due and payable.

65(6)
Where:

(a) the Commissioner has served notice in respect of a person to the effect that the taxable profit of the person in relation to a petroleum project in respect of a year of tax is nil; and

(b) the Commissioner subsequently makes an assessment of the taxable profit of the person in relation to the petroleum project in respect of the year of tax and of the tax payable on that taxable profit;
the following provisions have effect for the purposes of this section:

(c) the notice referred to in paragraph (a) shall be deemed to be an assessment (in this subsection referred to as the notional assessment ) on which a nil amount of tax became due and payable at the end of 21 days after the date of service of the notice; and

(d) the assessment referred to in paragraph (b) shall be deemed to be an amendment of the notional assessment.

65(12)
Unless the contrary intention appears, in sections 66 , 92 and 109 , but not in any other section of this Act, tax includes the general interest charge payable under this section.
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History

S 65(12) amended by No 44 of 2000, s 3 Sch 3 item 41, by substituting ``92 and 109'' for `` 83 , 84 , 86 , 87 , 88 , 89 , 92 , 109 , 110 and 111 '', effective 22 December 1999. A reference to s 83, 84, 86, 88, 89, 110 or 111 in an item in Sch 2 Pt 3 of the A New Tax System (Tax Administration) Act 1999 includes a reference to the section as it had effect, before its repeal, because of subsection 93(1) of this Act.

65(13)
The ascertainment of an amount of the general interest charge under this section shall be deemed not to be an assessment within the meaning of any of the provisions of this Act.

65(14)
The amount of the general interest charge that a person is liable to pay is called interest payable under this section.
SECTION 66 REFUND OF AMOUNTS OVERPAID
66(1)
Where, by reason of an amendment of an assessment, a person's liability to tax is reduced:

(a) the amount by which the tax is so reduced shall be taken, for the purposes of sections 65 and 85 never to have been payable; and

(b) the Commissioner shall:

(i) refund the amount of any tax overpaid; or

(ii) apply the amount of any tax overpaid against any liability to the Commonwealth of the person arising under or by virtue of this Act or any other Act of which the Commissioner has the general administration and refund any part of the amount that is not so applied.

66(2)
In subsection (1), unless the contrary intention appears, tax includes additional tax under section 85 or Part IX
SECTION 67 AMENDED ASSESSMENT TO BE AN ASSESSMENT
67
Except as otherwise provided, an amended assessment is an assessment for all the purposes of this Act. SECTION 68 NOTICE OF ASSESSMENT
68
As soon as practicable after an assessment is made, the Commissioner shall serve notice of the assessment in writing on the person liable to pay the tax. SECTION 69 VALIDITY OF ASSESSMENT
69
The validity of any assessment is not affected by reason that any provision of this Act has not been complied with. SECTION 69A OBJECTIONS
69A
A person who is dissatisfied with an assessment made in relation to the person may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 .

SECTION 62 SELF-ASSESSMENT

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62(1)
This section applies if:

(a) at a particular time, a person gives a return to the Commissioner in relation to a year of tax and a petroleum project; and

(b) before that time, no return has been given, and no assessment has been made, in relation to the person, the year of tax and the project.

62(2)
The Commissioner is taken to have made an assessment of the amount of the person's taxable profit (or that the person has no taxable profit) in relation to the year of tax and the project, and of the tax payable on that amount (or that no tax is payable), in accordance with what the person specified in the return.

62(3)
The assessment is taken to have been made on the day the return is given to the Commissioner.

62(4)
On and after the day the Commissioner is taken to have made the assessment, the return is taken to be a notice of the assessment:

(a) under the hand of the Commissioner; and

(b) given to the person on the day the Commissioner is taken to have made the assessment.

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