Petroleum Resource Rent Tax Assessment Regulations 2024

PART 5 - NOTIONAL TAX AMOUNT - SALES GAS

SECTION 51 NOTIONAL TAX AMOUNT WHEN RPM PRICE USED

51(1)
This section applies if a participant in a relevant operation uses an RPM price for an assessable gas in working out assessable petroleum receipts under section 22 or 24 , and had an RPM price for the previous year of tax.

51(2)
For the purposes of paragraphs 97(1AA)(b) and 97(1BB)(b) of the Act, the amount that is to be included in working out the current period liability under subsection 97(1A) of the Act, or the current period receipts under subsection 97(1BA) of the Act, is:

EPVal	×	RPM _PREV × QAG _PREV
EPVal	×	EPVal _PREV

where:

EPVal
(short for end product value) means the end product value for the participant in the instalment period.

EPVal _PREV
means the end product value for the participant in the previous year of tax.

QAG _PREV
means the quantity of the assessable gas, measured by volume or mass, that was in the previous year of tax:

(a) for a relevant GTL operation - processed into project liquid that the participant was entitled to receive in the downstream stage (including any of that assessable gas that was used in that processing); or

(b) for a relevant GTE operation - consumed in the production of project electricity that the participant was entitled to receive in the downstream stage.

RPM _PREV
means the RPM price for the assessable gas for the participant for the previous year of tax.

51(3)
If the participant sells a quantity of project liquid or project electricity from the operation as part of the operation in the period, and the sale is an arm ' s length transaction, the market value of the quantity is taken to be the amount received for the sale.

51(4)
For a quantity of project liquid or project electricity to which subsection (3) does not apply, the market value of the quantity is the market value at the end of the downstream stage.

51(5)
If the Commissioner is not satisfied that sufficient information is available to determine a market value for the purposes of subsection (4) , the market value of the quantity of project liquid or project electricity is the amount determined by the Commissioner as fair and reasonable.

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.