INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10AA - Prospecting and mining for petroleum  

SECTION 124   INTERPRETATION  

124(1)   [Definitions]  

In this Division:

net exempt income from petroleum
, in relation to a taxpayer in relation to a year of income, means the amount remaining after deducting from the exempt income from petroleum derived by the taxpayer during that year of income all expenses (other than expenses of a capital nature) incurred in gaining or producing that exempt income and any taxes paid during that year of income in respect of exempt income from petroleum derived by the taxpayer during that year of income or a preceding year of income.

prescribed petroleum operations
means mining operations for the purpose of obtaining petroleum, being operations carried on for the purpose of gaining or producing assessable income.

property
includes a mining or prospecting right.

124(2)   [Deductibility under former Division]  

A reference in this Division to a deduction or deductions allowed or allowable under this Division (not including a reference to a deduction or deductions allowed or allowable under a specified provision of this Division) shall, unless the contrary intention appears, be read as including a reference to a deduction or deductions allowed or allowable under the Division for which this Division was substituted.

124(3)   [Two or more petroleum fields]  

Where a taxpayer carries on prescribed petroleum operations on 2 or more petroleum fields, this Division (other than sections 124AE , 124AF and 124AH ) shall, except to the extent to which a contrary intention appears, be construed as applying in relation to the operations of that taxpayer on and in connexion with each of those petroleum fields as if it were the only petroleum field on which the taxpayer carried on prescribed petroleum operations, and, for the purposes of the application of this Division (other than sections 124AE , 124AF and 124AH ) in relation to a taxpayer in relation to a petroleum field:

(a) any matters or things relating exclusively to any other petroleum field on which the taxpayer carried on prescribed petroleum operations shall be disregarded; and

(b) amounts of expenditure (including expenditure on plant for use in operations on 2 or more of the petroleum fields on which the taxpayer carried on prescribed petroleum operations), or other amounts, to which paragraph (a) does not apply shall be apportioned in such manner as the Commissioner considers reasonable.

124(4)   [Commissioner's discretion re amount specified in s 124AB notice]  

For the purposes of this Division, any amount specified in a notice given to the Commissioner under section 124AB in relation to the acquisition from a taxpayer of a petroleum prospecting or mining right or petroleum prospecting or mining information shall be deemed to be wholly attributable to expenditure incurred by the taxpayer, and the extent to which such an amount is attributable to particular expenditure, to expenditure of a particular class or to expenditure incurred at a particular time or during a particular period shall be as determined by the Commissioner.

124(5)   [Amount specified in notice]  

A reference in a provision of this Division to an amount specified in a notice shall, if another amount is deemed to be specified in that notice in lieu of the amount in fact so specified by virtue of another provision of this Division or by virtue of a provision of the Division for which this Division was substituted, be read as a reference to that other amount.