INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10AA - Prospecting and mining for petroleum  

SECTION 124AE  

124AE   UNRECOUPED PREVIOUS CAPITAL EXPENDITURE  
For the purposes of this Division, the unrecouped previous capital expenditure of a taxpayer as at the end of a year of income (in this section referred to as the relevant year of income ) is the amount, if any, remaining after deducting from the sum of:

(a) so much of the amount that, for the purposes of section 124DF of the Income Tax Assessment Act 1936-1973 as amended by the Income Tax Assessment Act 1974 , was the unrecouped capital expenditure of the taxpayer as at the end of the year of income of the taxpayer next preceding the year of income of the taxpayer in which 17 September 1974 occurred as remains after deducting from that amount any part of that amount that has been allowed or is allowable as a deduction under section 124DG of that Act as so amended from the assessable income of that next preceding year of income; and

(b) so much of any expenditure of a capital nature that would be allowable capital expenditure of the taxpayer for the purposes of section 124DD of the Income Tax Assessment Act 1936-1973 as amended by the Income Tax Assessment Act 1974 if that section were still in force as was incurred by the taxpayer after the year of income first referred to in paragraph (a) and before the end of the relevant year of income, being expenditure incurred on or before 17 September 1974, or incurred after 17 September 1974 and before 1 July 1976 in pursuance of a contract made on or before 17 September 1974, being a contract under which property or petroleum prospecting or mining information was to be acquired by, or work was to be performed for, the taxpayer,

the aggregate of the following amounts:

(c) any part of the expenditure included in the sum of the amounts referred to in paragraphs (a) and (b) that:

(i) has been allowed or is allowable as a deduction under section 124AF from the assessable income of a year of income preceding the relevant year of income; or

(ii) was incurred on property (not being property in respect of which a notice has been duly given to the Commissioner under section 124AB by the taxpayer and a person who acquired the last-mentioned property from the taxpayer) that has been disposed of, lost or destroyed or the use of which by the taxpayer for purposes of carrying on prescribed petroleum operations has been otherwise terminated, and has not been allowed and is not allowable as a deduction from the assessable income of any year of income that ended before the year of income in which the disposal, loss, destruction or termination of use took place;

(d) so much of any amounts specified in notices duly given to the Commissioner under section 124AB in relation to the acquisition from the taxpayer, during the relevant year of income or a preceding year of income, of a petroleum prospecting or mining right or petroleum prospecting or mining information, as are attributable to expenditure that would, but for this paragraph, be included in the unrecouped previous capital expenditure of the taxpayer as at the end of the relevant year of income;

(e) the total net exempt income from petroleum derived by the taxpayer in the relevant year of income or in an earlier year of income subsequent to the year of income next preceding the year of income of the taxpayer in which 17 September 1974 occurred, reduced by the sum of:

(i) where, but for the net exempt income from petroleum derived by the taxpayer in any of those preceding years of income, a loss would have been incurred by the taxpayer for the purposes of section 79E , 79F , 80 , 80AAA or 80AA in any of those preceding years of income or the amount of a loss incurred by the taxpayer for the purposes of any of those sections in any of those preceding years of income would have been greater - the amount that would have been the amount of that loss or the amount by which that loss would have been greater, as the case may be;

(ii) where, but for the net exempt income from petroleum derived by the taxpayer in any of those preceding years of income, a deduction would have been allowable under section 79E , 79F , 80 , 80AAA or 80AA from the assessable income of the taxpayer of any of those preceding years of income, or the amount of a deduction allowed or allowable under any of those sections from the assessable income of the taxpayer of any of those preceding years of income would have been greater - the amount that would have been the amount of that deduction or the amount by which that deduction would have been greater, as the case may be; and

(iii) the amount of any loss incurred by the taxpayer in the relevant year of income or in any of those preceding years of income in relation to exempt income from petroleum; and

(f) (Omitted by No 107 of 1989)

(g) any amounts of subsidy received by the taxpayer in respect of expenditure incurred on or before 17 September 1974, or incurred after 17 September 1974 and before 1 July 1976 in pursuance of a contract made on or before 17 September 1974, being a contract under which property was to be acquired by, or work was to be performed for, the taxpayer, being amounts of subsidy received after the year of income first referred to in paragraph (a) and before the end of the relevant year of income under agreements entered into under an Act relating to the search for petroleum, reduced by any amounts of such subsidy repaid by the taxpayer before or during the relevant year of income.