Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1975 No. 80 of 1975 - SECT 54

54. (1) Income derived by a provident, benefit, superannuation or retirement
fund on or after Papua New Guinea independence day shall not be taken to be
income to which paragraph 23 (jaa) of the Principal Act as amended by this Act
applies by reason that the fund was established before that day by an
Ordinance of Papua New Guinea or by reason that the fund was established by a
municipal corporation, other local governing body or public authority that was
constituted before that day by or under such an Ordinance.

(2) Paragraph 23 (jb) of the Principal Act as amended by this Act does not
apply in respect of income derived by a provident, benefit, superannuation or
retirement fund before Papua New Guinea independence day where, but for this
sub-section, that paragraph would apply in respect of that income by reason of
the operation of sub-section 6 (7) of the Principal Act as amended by this
Act.

(3) Where a company was, immediately before Papua New Guinea independence day,
a body constituted by a law of Papua New Guinea, then-

   (a)  for the purposes of the application of sub-paragraph 103A (2) (d)
        (iii) of the Principal Act as amended by this Act in relation to the
        year of income in which Papua New Guinea independence day occurs-the
        company shall not be taken to have ceased to be a body constituted by
        a law of a Territory by reason of the establishment of an independent
        sovereign state in the territories that constituted the Territory of
        Papua and the Territory of New Guinea; and

   (b)  for the purposes of the application of that sub-paragraph in relation
        to any subsequent year of income-the company shall not be taken to be
        a body constituted by a law of a Territory.

(4) For the purposes of the application of Division 8 of Part III of the
Principal Act as amended by this Act in relation to the year of income in
which Papua New Guinea independence day occurs, a reference in that Division
to a Territory shall be construed as including a reference to the independent
sovereign state established in the territories that constituted the Territory
of Papua and the Territory of New Guinea.

(5) In the application of Division 10AA of Part III of the Principal Act as
amended by this Act to assessments in respect of income of any year of income
subsequent to the year of income in which Papua New Guinea independence day
occurs-

   (a)  section 124AD of the Principal Act as so amended applies separately in
        relation to expenditure incurred in or in connexion with carrying on
        mining operations in Australia and in relation to expenditure incurred
        in or in connexion with carrying on mining operations in Papua New
        Guinea, but-

        (i)    for the purposes of the separate application of that section in
               relation to expenditure incurred in or in connexion with
               carrying on mining operations in Australia, the references in
               that section to assessable income from petroleum shall be
               construed as references to assessable income derived from the
               sale of petroleum, or of the products of petroleum, obtained
               from mining operations carried on in Australia; and

        (ii)   for the purposes of the separate application of that section in
               relation to expenditure incurred in or in connexion with
               carrying on mining operations in Papua New Guinea, any
               deduction allowable under that section in its application in
               relation to expenditure incurred in or in connexion with
               carrying on mining operations in Australia shall be deemed to
               be a deduction allowable otherwise than under that section or
               section 124AH;

   (b)  section 124AF of the Principal Act as so amended applies separately in
        relation to expenditure incurred in or in connexion with carrying on
        mining operations in Australia and in relation to expenditure incurred
        in or in connexion with carrying on mining operations in Papua New
        Guinea but-

        (i)    for the purposes of the separate application of that section in
               relation to expenditure incurred in or in connexion with
               carrying on mining operations in Australia, the references in
               that section to assessable income from petroleum shall be
               construed as references to assessable income derived from the
               sale of petroleum, or of the products of petroleum, obtained
               from mining operations carried on in Australia; and

        (ii)   for the purposes of the separate application of that section in
               relation to expenditure incurred in or in connexion with
               carrying on mining operations in Papua New Guinea, any
               deduction allowable under that section in its application in
               relation to expenditure incurred in or in connexion with
               carrying on mining operations in Australia shall be deemed to
               be a deduction allowable otherwise than under that section,
               section 124AD or section 124AH; and

   (c)  section 124AH of the Principal Act as so amended applies separately in
        relation to expenditure incurred on exploration or prospecting in
        Australia and in relation to expenditure incurred on exploration or
        prospecting in Papua New Guinea but-

        (i)    for the purposes of the separate application of that section in
               relation to expenditure incurred on exploration or prospecting
               in Australia, the references in that section to assessable
               income from petroleum shall be construed as references to
               assessable income derived from the sale of petroleum, or of the
               products of petroleum, obtained from mining operations carried
               on in Australia; and

        (ii)   for the purposes of the separate application of that section in
               relation to expenditure incurred on exploration or prospecting
               in Papua New Guinea, the reference in sub-section (2) of that
               section to all other allowable deductions includes a reference
               to any deduction under that section in its application to
               expenditure incurred on exploration or prospecting in
               Australia.
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