An entity needs to keep records that record and explain all transactions and other acts it (or another entity) engages in that are relevant to working out its PRRT liability for each interest it has in a petroleum project. An entity that holds interests in exploration permits and retention leases also needs to keep records to meet its future PRRT obligations.
This means that payments, and any method used to apportion payments, need to be able to be substantiated for the purpose of working out deductible expenditure in relation to a petroleum project. Not keeping these records is an offence of strict liability under the PRRTAA.
We encourage an entity to keep the following records as evidence of the apportionment or substantiation of deductible expenditure for a project:
- project development timelines and plans
- contracts, agreements and invitations to tender
- job orders and invoices
- lifting schedules
- joint venture billing statements and other records and statements
- job descriptions and duty statements of employees
- time-writing documents which provide details of the activities undertaken, such as timesheets
- account coding policies and procedures
- applications for exploration permits, retention leases and production licences
- reports, plans and statements required for regulatory and environmental purposes, for example, exploration work programs, field development plans, environmental impact statements, native title agreements and so on
- tax working papers, financial statements and meeting minutes, including those involved with the board and relevant committees
- secondary records, including documents that explain the entity’s financial position on a regular basis throughout the year, for example, journals, ledgers and so on
- other documents that establish the nature and character of the activities undertaken, or the use of property purchased by the entity, for each interest in a petroleum project, retention lease or exploration permit.