PETROLEUM RESOURCE RENT TAX ASSESSMENT REGULATIONS 2005 (REPEALED)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 34   CAPITAL COSTS INCURRED BEFORE THE PRODUCTION YEAR - PROJECT SALES GAS PRODUCED FIRST  

34(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) the MPC production year for the operation, if any, is not before the production year.

34(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.

34(3)    
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.

34(4)    
The included capital cost so augmented is taken to be incurred in the production year.