Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 1 - Liability to tax on taxable profit  

SECTION 22   TAXABLE PROFIT  

22(1)    
Where, in relation to a petroleum project and a year of tax, the assessable receipts derived by a person exceed the sum of:

(a) the deductible expenditure incurred by the person; and

(b) the total of the amounts (if any) transferred by the person to the project in relation to the year of tax under section 45A ; and

(c) the total of the amounts (if any) transferred by another person to the person in relation to the project and the year of tax under section 45B ;

the person is taken for the purposes of this Act to have a taxable profit in relation to the project and the year of tax of an amount equal to the excess.

Note:

because of subsection 45D(2) , some transfers of expenditure are taken to be transfers of amounts compounded in accordance with Part 7 of Schedule 1 .

Allowing for Greater Sunrise apportionments

22(2)    

However, if the petroleum project is a Greater Sunrise project, the person is taken for the purposes of this Act to have a taxable profit in relation to the project and the year of tax of an amount worked out using the following formula:

Initial taxable profit × Apportionment percentage figure

100

where:

apportionment percentage figure
has the meaning given by subsection 2C(2) .

initial taxable profit
means the amount of taxable profit worked out under subsection (1) ignoring this subsection.