Commonwealth Consolidated Acts

PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987 - SECT 2BA

             (1)  This section sets out the method for identifying a designated company group for the purposes of this Act.

             (2)  First, identify a particular overall company group.

             (3)  Second, identify all of the members of the overall company group that are entitled to derive assessable receipts in relation to a petroleum project (whether or not the same petroleum project). These members constitute a provisional designated company group .

             (4)  Third, if the following conditions are satisfied in relation to a company (the key company ):

                     (a)  the key company is a member of the provisional designated company group;

                     (b)  the key company is not a subsidiary of any other company in the provisional designated company group;

                     (c)  each other company in the provisional designated company group is a subsidiary of the key company;

then:

                     (d)  the provisional designated company group is a designated company group ; and

                     (e)  the key company is the head company of that designated company group.

             (5)  Fourth, if:

                     (a)  subsection (4) does not apply; and

                     (b)  each company in the provisional designated company group is a subsidiary of another company (the key company ) that:

                              (i)  is a member of the overall company group; and

                             (ii)  is not a member of the provisional designated company group;

then:

                     (c)  both:

                              (i)  the key company; and

                             (ii)  the members of the provisional designated company group;

                            constitute a designated company group ; and

                     (d)  the key company is the head company of that designated company group.

             (6)  Subsection (5) has effect subject to subsection (7).

             (7)  If:

                     (a)  a designated company group is covered by subsection (5); and

                     (b)  the head company of the designated company group is a subsidiary of another company (the higher‑tier company ); and

                     (c)  the higher‑tier company is a member of the overall company group; and

                     (d)  the higher‑tier company is not a member of the provisional designated company group;

there is taken not to be a designated company group of which:

                     (e)  the higher‑tier company is the head company; and

                      (f)  any member of the provisional designated company group is a member.