PETROLEUM RESOURCE RENT TAX ASSESSMENT REGULATIONS 2005 (REPEALED)

PART 5 - THE RESIDUAL PRICING METHOD  

Division 5.3 - Allocating capital costs to years of tax  

REGULATION 35   CAPITAL COSTS INCURRED BEFORE THE PRODUCTION YEAR - OTHER MARKETABLE PETROLEUM COMMODITIES PRODUCED FIRST  

35(1)    
For Step 9 of the residual pricing method, this regulation applies to an included capital cost for the taxpayer if:

(a) the included capital cost is incurred before the production year; and

(b) marketable petroleum commodities other than project sales gas are produced in the operation; and

(c) the MPC production year for the operation is before the production year.

35(2)    
The included capital cost:

(a) is taken to be the amount that has been augmented in accordance with regulation 33 ; and

(b) is taken to be incurred in the final cost year;

and is not to be the actual included capital cost incurred when it was actually incurred.

35(3)    
If the included capital cost is incurred for a unit of property that will be used solely for the recovery of project natural gas, the production of project sales gas, the processing of project sales gas into project liquid, the combustion of project sales gas to produce project electricity or the transportation or storage of project product, the included capital cost is augmented for the number of calendar years between the start date for the included capital cost and the production date.

35(4)    
If subregulation (3) does not apply, and the included capital cost is incurred before the MPC production year, the included capital cost is:

(a) augmented for the number of calendar years between the start date for the included capital cost and the 31 December of the MPC production year; and

(b) reduced for the number of calendar years between the 31 December of the MPC production year and the production date.

35(5)    
If subregulation (3) does not apply, and the included capital cost is incurred in or after the MPC production year and before the production year, the included capital cost is reduced for the number of calendar years between the start date for the included capital cost and the production date.

35(6)    
An included capital cost as reduced, or as augmented and reduced, under this regulation is taken to be incurred in the production year.