Petroleum Resource Rent Tax Assessment Amendment Act 2006 (78 of 2006)

Schedule 2   Group company transferable exploration expenditure continuity of interest rule

Part 2   Application of amendments

4   Application - pre-1 July 2006 expenditure

 

(1) Transferable exploration expenditure that was actually incurred before 1 July 2006 may, unless subitem (2), (3) or (4) applies, be transferred in relation to a transfer year that starts on or after 1 July 2006 from one company (the loss company ) to another company (the profit company ) in relation to a petroleum project (the receiving project ) in which the profit company holds (or has held) an interest (the receiving interest ).

      

(2) The expenditure cannot be transferred if new clause 31, or any other provision of the Petroleum Resource Rent Tax Assessment Act 1987 (as amended by this Act), prevents the transfer.

      

(3) If the starting day for the receiving project was before 1 July 2006, the expenditure cannot be transferred if old clause 31 would have prevented the transfer of the expenditure, in relation to the transfer year starting on 1 July 2005, from the company which actually incurred the expenditure to the company which held the receiving interest at the end of that year.

      

(4) If the starting day for the receiving project was on or after 1 July 2006, the expenditure cannot be transferred if paragraph 31(1)(a) of the old clause 31, subject to subclauses (2), (2AA), (2AB) and (2A) of that clause, did not, in relation to the transfer year starting on 1 July 2005, apply to the company which actually incurred the expenditure.

      

(5) If section 41 of the Petroleum Resource Rent Tax Assessment Act 1987 applies to the expenditure, a reference in subitem (3) or (4) to the company which actually incurred the expenditure is taken to be a reference to the company taken under paragraph 41(1)(b) of the Act to have incurred the liability for making the expenditure.

      

(6) An expression used in this item has the same meaning as in Part 6 of the Schedule to the Petroleum Resource Rent Tax Assessment Act 1987.

      

(7) In this item:

new clause 31 means clause 31 of the Schedule to the Petroleum Resource Rent Tax Assessment Act 1987, as amended by Part 1 of this Schedule.

old clause 31 means clause 31 of the Schedule to the Petroleum Resource Rent Tax Assessment Act 1987, as in force immediately before 1 July 2006.