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

Schedule 4   Self-assessment

Part 1   Amendments

Petroleum Resource Rent Tax Assessment Act 1987

10   Division 2 of Part VI

Repeal the Division, substitute:

Division 2 - Assessments (general)

61 Making assessments

The Commissioner must, from returns and any other information in the Commissioner's possession, make an assessment of the amount of a person's taxable profit (or that a person has no taxable profit) in relation to a year of tax and a petroleum project, and of the tax payable on that amount (or that no tax is payable).

62 Self-assessment

(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.

(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.

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

(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.

63 Default assessments

(1) The Commissioner may make an assessment of the amount of a person's taxable profit (or that a person has no taxable profit) upon which, in the opinion of the Commissioner, tax is payable by the person, and of the amount of that tax (or that no tax is payable), if:

(a) the person makes default in giving a return to the Commissioner; or

(b) the Commissioner is not satisfied with the person's return; or

(c) the person has not given a return to the Commissioner, and the Commissioner has reason to believe that the person is liable to pay tax.

(2) As soon as practicable after an assessment under subsection (1) is made, the Commissioner must give notice in writing of the assessment to the person.

64 Reliance on information in returns and statements

(1) The Commissioner may accept (in whole or in part) the following for the purposes of making an assessment in relation to a person, a year of tax and a petroleum project:

(a) a statement in a return of the assessable receipts, deductible expenditure or transferable exploration expenditure in relation to the project;

(b) any other statement in the return, or otherwise, made by or on behalf of the person.

(2) In determining whether an assessment is correct, any determination, opinion or judgment of the Commissioner made, held or formed in connection with the consideration of an objection against the assessment is taken to have been made, held or formed when the assessment was made.

65 Validity of assessments

The validity of an assessment is not affected by a failure to comply with this Act.

66 Objections to assessments

(1) 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.

(2) A person cannot object against an assessment ascertaining that no tax is payable by the person in relation to a year of tax and a petroleum project, unless the person is seeking an increase in the person's tax liability.

Division 3 - Assessments (amendment)

67 Amendment of assessments

(1) The Commissioner may amend an assessment in relation to a person within 4 years after the day on which notice of the assessment was given to the person.

Note 1: If a person's return is taken to be an assessment under section 62, the Commissioner is taken to have given a notice of assessment to the person on the day the person gave the return to the Commissioner: see subsection 62(4).

Note 2: The amendment period may be extended: see sections 69, 70 and 71.

(2) In addition, the Commissioner may amend an assessment at any time:

(a) if he or she is of the opinion there has been fraud or evasion; or

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

(c) as a result of an objection, or pending a review or appeal; or

(d) to give effect to a determination under paragraph 53(1)(c); or

(e) to take account of the operation of subsection 5(4), 20(8), 45A(3), 45B(3) or 45C(6).

(3) As soon as practicable after the Commissioner amends an assessment in relation to a person, the Commissioner must give notice in writing of the amended assessment to the person.

Note: This section applies to assessments even if no tax is payable: see the definition of assessment in section 2.

68 Amended assessments taken to be assessments

An amended assessment is taken to be an assessment for the purposes of this Act, except as otherwise provided.

69 Amending amended assessments

Limit on amending amended assessments under subsection 67(1)

(1) The Commissioner cannot amend an amended assessment under subsection 67(1) if the period mentioned in that subsection in relation to the original assessment concerned has ended.

Note: The Commissioner may amend amended assessments at any time if subsection 67(2) applies.

Refreshed amendment period for amending amended assessments

(2) The Commissioner may amend an amended assessment (the earlier amended assessment ), to increase a person's liability in relation to a particular, within 4 years after the day the Commissioner gave the person notice of the earlier amended assessment, if:

(a) the earlier amended assessment reduced the person's liability in relation to the particular; and

(b) the Commissioner accepted a statement made by the person in making the earlier amended assessment.

(3) The Commissioner may also amend an amended assessment (the earlier amended assessment ), to reduce a person's liability in relation to a particular, within 4 years after the day the Commissioner gave the person notice of the earlier amended assessment, if:

(a) the earlier amended assessment increased the person's liability in relation to the particular; or

(b) the earlier amended assessment reduced the person's liability in relation to the particular, but paragraph (2)(b) does not apply.

(4) The Commissioner cannot amend an assessment under subsection (3) in relation to a particular if the Commissioner has previously amended an assessment under subsection (2) in relation to that particular.

Note 1: The earlier amended assessment may be an amendment of the original assessment or of a previous amendment of the original assessment.

Note 2: The Commissioner may amend the earlier amended assessment at any time if subsection 67(2) applies.

Note 3: The amendment period mentioned in this section may be extended under section 70.

70 Extended periods for amendment - taxpayer applications and private rulings

Taxpayer applications

(1) The Commissioner may amend an assessment in relation to a person after the end of the limited amendment period if the person applied for the amendment in the approved form before the end of the period.

Private rulings

(2) The Commissioner may amend an assessment in relation to a person after the end of the limited amendment period if:

(a) the person applied for a private ruling under Division 359 in Schedule 1 to the Taxation Administration Act 1953 before the end of the period; and

(b) the Commissioner made a private ruling under that Division; and

(c) the amendment gives effect to the ruling.

(3) In this section:

limited amendment period , for the amendment of an assessment, means the period mentioned in subsection 67(1) or 69(2) or (3) for the amendment of the assessment.

71 Extended periods for amendment - Federal Court orders and taxpayer consent

(1) This section applies if:

(a) the Commissioner has started to examine the affairs of a person in relation to an assessment; and

(b) the Commissioner has not completed the examination before the end of the limited amendment period, or that period as extended under this section.

(2) The limited amendment period is extended for an additional period if:

(a) on an application by the Commissioner before the end of the limited amendment period (or that period as extended under this section), the Federal Court of Australia orders the extension for the additional period; or

(b) before the end of the limited amendment period (or that period as extended under this section):

(i) the Commissioner requests the person to consent to the extension of the limited amendment period; and

(ii) the person, by notice in writing, consents to the extension for the additional period.

(3) The Federal Court of Australia may order an extension of the limited amendment period under paragraph (2)(a) only if the Court is satisfied that it was not reasonably practicable, or that it was inappropriate, for the Commissioner to complete the examination within the limited amendment period (or that period as extended under this section), because of:

(a) any action taken by the person; or

(b) any failure of the person to take action that would have been reasonable for the person to take.

(4) The limited amendment period may be extended more than once under this section.

(5) In this section:

limited amendment period , for the amendment of an assessment, means the period mentioned in subsection 67(1) or 69(2) or (3) for the amendment of the assessment.

72 Refund of overpaid amounts

(1) If, because of an amendment of an assessment, a person's liability (the earlier liability ) to tax or a related charge is reduced, the amount by which the tax or charge is so reduced is taken never to have been payable for the purposes of:

(a) section 85 (which applies the general interest charge); and

(b) Division 280 in Schedule 1 to the Taxation Administration Act 1953 (which applies the shortfall interest charge).

Note: The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953.

(2) The Commissioner must refund or apply the amount of any tax overpaid in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953.

(3) However, if a later amendment of the assessment is made and all or some of the person's earlier liability in relation to a particular is reinstated, subsection (1) is taken not to have applied, or not to have applied to the extent that the earlier liability is reinstated.

Note: If the amendment of an assessment results in an increase in a person's tax liability, the person is liable to pay shortfall interest charge on the amount of the increase: see Division 280 in Schedule 1 to the Taxation Administration Act 1953.