PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987

PART V - LIABILITY TO TAXATION  

Division 3 - Deductible expenditure  

SECTION 36   CLASS 1 AUGMENTED BOND RATE EXPLORATION AND CLASS 1 GDP FACTOR EXPENDITURES IN RELATION TO PROJECT GROUPS  

36(1)  
Where there is a project group in relation to a person in relation to a year of tax, the following provisions have effect:


(a) in relation to any petroleum project in the group other than the last occurring project - where there is a carry forward expenditure amount of the person in relation to the project in relation to the year of tax, that amount shall be taken to be class 1 augmented bond rate exploration expenditure or class 1 GDP factor expenditure, as the case requires, incurred by the person in the year of tax in relation to the next occurring project and the person shall not be taken by subsection 34(3) to have incurred class 1 augmented bond rate exploration expenditure, or by subsection 35(3) to have incurred class 1 GDP factor expenditure, in relation to the first-mentioned project on the first day of the next succeeding year of tax;


(b) in relation to the last occurring petroleum project in the group - where, but for this paragraph, the person would be taken by subsection 34(3) to have incurred an amount of class 1 augmented bond rate exploration expenditure, or by subsection 35(3) to have incurred an amount of class 1 GDP factor expenditure, in relation to the project on the first day of the next succeeding year of tax, that expenditure shall be taken to have been incurred instead by the person on that day in relation to the first occurring of such of the projects in the group as are petroleum projects on that day.

36(2)  
Where 2 or more project groups, in relation to a person in relation to a financial year, are related project groups in relation to each other, subsection (1) applies as if the petroleum projects in the groups were projects in a single project group in relation to the person in relation to the financial year.

36(3)  
For the purposes of this section:


(a) where:


(i) a financial year is a year of tax in relation to a person in relation to 2 or more petroleum projects (not including any ineligible project in relation to the financial year); and

(ii) the production licence, or at least one of the production licences, in relation to each of the projects is related to the same exploration permit;
the projects shall be taken to be in a project group in relation to the person in relation to the year of tax;


(b) a reference to the relevant production licence in relation to a petroleum project is a reference to:


(i) in the case of a combined project - the production licence in relation to the project that first came into force; and

(ii) in any other case - the production licence in relation to the project;


(c) petroleum projects in a project group in relation to a person in relation to a year of tax shall be taken to occur in the order in which the relevant production licences in relation to the projects came into force; and


(d) a project group, in relation to a person in relation to a financial year, shall be taken to be a related project group in relation to another project group, in relation to the person in relation to the financial year, if:


(i) one or more of the petroleum projects in the first-mentioned group is a project in the second-mentioned group; or

(ii) one or more of the petroleum projects in the first-mentioned group is a project in another project group that is a related project group in relation to the second-mentioned project group under subparagraph (i) or this subparagraph.

36(4)  
Where, by reason of the application of subsection 34(3) or 35(3) in relation to a person in relation to a petroleum project in relation to a year of tax (in this subsection referred to as the relevant year of tax ), an amount of class 1 augmented bond rate exploration expenditure or class 1 GDP factor expenditure, as the case may be, would, if subsection (1) did not provide otherwise, be taken to be incurred by the person on the first day of the next succeeding year of tax, there shall, for the purposes of this section, be taken to be a carry forward expenditure amount in relation to the person in relation to the project in relation to the relevant year of tax equal to the amount that would so be taken to be incurred if:


(a) in the case of an amount of class 1 augmented bond rate exploration expenditure - the formula in subsection 34(3) in its application in relation to the relevant year of tax consisted only of component A ; and


(b) in the case of an amount of class 1 GDP factor expenditure - the formula in subsection 35(3) in its application in relation to the relevant year of tax consisted only of component A .




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