Taxation Laws Amendment Act (No. 3) 1993 (118 of 1993)

Part 7   AMENDMENT OF THE PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987

133   Rule-loss company and profit company to have held interests and been group companies

Clause 31 of the Schedule to the Principal Act is amended:

(a) by inserting in subclause (1) "(2AA), (2AB)," after "subclauses (2),";
            

(b) by inserting after subclause (2) the following subclauses:
            

"(2AA) If:

(a) the loss company started (whether or not for the first time) to hold an interest in relation to the transferring entity during the financial year in which the expenditure was incurred; and

(b) the expenditure was incurred after the time (the 'farm-in time') when the loss company started to hold the interest; and

(c) the expenditure was actually incurred by the loss company (rather than taken by section 48 or 48A to have been incurred by the loss company);

subclause (1) does not require the loss company to have held an interest in relation to the transferring entity before the farm-in time.

"(2AB) If:

(a) at a time (the 'cessation time') after the expenditure was incurred and on or after 1 July 1993, the loss company ceased to hold any interest in relation to the transferring entity; and

(b) the cessation did not occur because of a transaction to which section 48 applies;

subclause (1) does not require the loss company to have held an interest in relation to the transferring entity at a time after the cessation time.".