• Section B: Calculation of the instalment transfer interest charge

    An instalment transfer excess is an amount of exploration expenditure that was either transferred by:

    • the entity to the entity's interest in the petroleum project in an instalment period but the entity is no longer entitled to transfer to the project at the year end because the common ownership test cannot be met
    • a group company to the entity's interest in the petroleum project but can no longer be transferred at the year end because the common ownership test cannot be met.

    An offset amount is applied to reduce the instalment transfer excess. The offset amount is either any amount of:

    • the instalment transfer excess that is otherwise transferred by the entity to another project at the year end
    • other transferable exploration expenditure that is transferred to the project because the original amount cannot be transferred.

    The entity will be liable for an instalment transfer interest charge on the net amount.

    Attention

    The entity may remain liable for the full amount of the charge even if it disposed of all or part of its interest in the petroleum project.

    End of attention

    Question 5 Information for calculation of the instalment transfer interest charge

    For each instalment period, insert at:

    • label A the total instalment transfer excess amount (if any)
    • label B the total offset amount applied (if any)
    • label C the net amount (if any) – that is, the total instalment transfer excess amount less any total offset amount (A - B).
    Last modified: 08 Mar 2013QC 26720