PRRT assessable receipts

The most significant assessable receipts that arise from a petroleum project are from the commercial recovery of petroleum. These are referred to as assessable petroleum receipts. They generally arise when recovered petroleum is sold before it is processed or after some preliminary processing has been undertaken.

Certain other kinds of receipts are also assessable under the petroleum resource rent tax (PRRT). Broadly, these receipts are assessable to ensure there is symmetry in the PRRT as they generally arise from amounts that have been previously claimed as a deduction. For example, the consideration received from the disposal of property used in a petroleum project are assessable as the original purchase is deductible under the PRRT.

There is no revenue or capital distinction in the PRRT. Therefore, receipts of a revenue or capital nature may be assessable under the PRRT.

    Last modified: 13 Jan 2014QC 27323