INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10AA - Prospecting and mining for petroleum  

SECTION 124AF   DEDUCTION OF UNRECOUPED PREVIOUS CAPITAL EXPENDITURE  

124AF(1)   [Deduction allowable]  

Where, in the year of income, a taxpayer derives assessable income from petroleum, so much of the amount of the unrecouped previous capital expenditure of the taxpayer as at the end of the year of income as does not exceed the amount remaining after deducting from that assessable income from petroleum all deductions allowable otherwise than under this section and sections 124AD , 124ADB , 124ADD , 124ADF , 124ADG and 124AH in respect of that assessable income from petroleum is an allowable deduction.

124AF(1A)    
A deduction is not allowable under subsection (1) for the 1997-98 year of income or any later year of income.

124AF(2)   [Deductions under other sections]  

The reference in subsection (1) to all deductions allowable otherwise than under this section and sections 124AD , 124ADB , 124ADD , 124ADF , 124ADG and 124AH in respect of the assessable income from petroleum derived by a taxpayer in the year of income is a reference to -

(a) any deductions allowable otherwise than under this section and sections 124AD , 124ADB , 124ADD , 124ADF , 124ADG and 124AH from the assessable income of the taxpayer of the year of income that relate exclusively to that assessable income from petroleum; and

(b) so much of any other deduction allowable otherwise than under this section and sections 124AD , 124ADB , 124ADD , 124ADF , 124ADG and 124AH from the assessable income of the taxpayer of the year of income as, in the opinion of the Commissioner, may appropriately be related to that assessable income from petroleum.