Commonwealth Numbered Acts

PETROLEUM RESOURCE RENT LEGISLATION AMENDMENT ACT 1991 No. 80, 1991 - SECT 19

19. After section 45 of the Principal Act the following Division is inserted:

"Division 3A - Transfer of exploration expenditure incurred on or after
1 July 1990 Transfer of expenditure - general

"45A. (1) This section applies to a person in respect of a financial year in
relation to which the person has transferable exploration expenditure.

"(2) In relation to the financial year, the person must transfer to petroleum
projects as much of the transferable exploration expenditure as can be
transferred in accordance with the rules set out in Part 5 of the Schedule.

"(3) A transfer of expenditure under this section in relation to a financial
year:

   (a)  must be made by completing a transfer notice and giving it to the
        Commissioner not later than 21 days after the end of the financial
        year or such later day as the Commissioner allows; and

   (b)  subject to subsection (4), takes effect when the notice is given to
        the Commissioner.

"(4) A purported transfer of expenditure under this section has no effect if
the transfer is not in accordance with the rules set out inPart 5 of the
Schedule.

"(5) A person who, without reasonable excuse, contravenes this section is
guilty of an offence punishable, on conviction, by a fine not exceeding
$2,000.

"(6) In this section: `transfer notice' means a written notice in the form
approved by the Commissioner for the purposes of this section. Transfer of
expenditure - group companies

"45B. (1) This section applies where:

   (a)  a number of companies are group companies in relation to each other
        and a financial year; and

   (b)  there is unused transferable exploration expenditure in relation to
        some of the companies (each of which is in this section called a `loss
        company') and the financial year.

"(2) In relation to the financial year, each loss company must transfer, to
such of the other companies as are not loss companies and in relation to
specified petroleum projects, as much of the loss company's unused
transferable exploration expenditure as can be transferred in accordance with
the rules set out in Part 6 of the Schedule.

"(3) A transfer of expenditure under this section in relation to a financial
year:

   (a)  must be made by completing a transfer notice and giving it to the
        Commissioner not later than 21 days after the end of the financial
        year or such later day as the Commissioner allows; and

   (b)  subject to subsection (4), takes effect when the notice is given to
        the Commissioner.

"(4) A purported transfer of expenditure under this section has no effect if
the transfer is not in accordance with the rules set out in Part 6 of the
Schedule.

"(5) A person who, without reasonable excuse, contravenes this section is
guilty of an offence punishable, on conviction, by a fine not exceeding
$2,000.

"(6) In this section: `transfer notice' means a written notice in the form
approved by the Commissioner for the purposes of this section; `unused
transferable exploration expenditure', in relation to a company and a
financial year, means so much of the transferable exploration expenditure in
relation to the company and the financial year as is not transferred, or to be
transferred, under section 45A. Commissioner's power to make transfers of
expenditure

"45C. (1) This section applies if a person contravenes section 45A or 45B by
failing to transfer expenditure as required by that section in relation to a
financial year.

"(2) Subject to subsection (3), the Commissioner may transfer the expenditure
that the person failed to transfer.

"(3) The transfer must:

   (a)  be in writing; and

   (b)  be such that, if it had been made by the person, it would have been a
        transfer of expenditure in relation to the financial year under
        section 45A or 45B, as the case requires.

"(4) For the purposes of this Act (other than this section), the transfer is
taken to be a transfer by the person under section 45A or 45B, as the case
requires.

"(5) The transfer may not be revoked or varied except:

   (a)  under subsection (6); or

   (b)  pursuant to a decision of the Tribunal or an order of a court; or

   (c)  to correct an error.

"(6) If:

   (a)  after the transfer, information becomes available to the Commissioner
        that was not available at the time of the transfer; and

   (b)  the Commissioner would not have transferred the expenditure in the
        same way, or at all, if he or she had been aware of the information at
        the time of transferring the expenditure; the Commissioner may, in
        writing, revoke the transfer and, if appropriate, make another
        transfer of expenditure under this section.

"(7) If the Commissioner revokes the transfer, then, for the purposes of this
Act, the transfer is taken never to have been made.

"(8) The Commissioner must, within 30 days after transferring the expenditure,
or revoking the transfer of the expenditure, cause written notice setting out
particulars of the transfer or revocation to be given to:

   (a)  if the transfer has or had effect as a transfer under section 45A -
        the person who is taken to have transferred the expenditure; or

   (b)  if the transfer has or had effect as a transfer under section 45B -
        the person who is taken to have transferred the expenditure and the
        company to which the expenditure is or was transferred.

"(9) If a person to whom a notice under subsection (8) is given is
dissatisfied with the Commissioner's decision to transfer the expenditure, or
revoke the transfer, as the case may be, the person may, within 60 days of
being given the notice, lodge with the Commissioner a written objection
against the decision setting out fully and in detail the grounds on which the
person relies.

"(10) The provisions of Part VII, other than subsection 71 (1), apply in
relation to an objection under subsection (9) in the same way as they apply in
relation to an objection against an assessment. Effect of transfer of
expenditure

"45D. (1) This section applies if a person transfers an amount of expenditure:

   (a)  to a petroleum project in relation to a financial year under section
        45A; or

   (b)  to a company in relation to a petroleum project and a financial year
        under section 45B.

"(2) If the expenditure was incurred in an earlier financial year, then, for
the purposes of this Act other than subsection (3), the transfer is taken to
be a transfer of the amount worked out in accordance with Part 7 of the
Schedule.

"(3) The expenditure transferred (disregarding the effect of subsection (2)):

   (a)  must not be transferred again in relation to the financial year; and

   (b)  must not be counted again as expenditure incurred, or taken to be
        incurred, by a person:

        (i)    when working out the liability of the person to tax in relation
               to a later financial year; or

        (ii)   when working out, in accordance with Part 2, 3 or 4 of the
               Schedule, whether there is expenditure that is transferable by
               the person in relation to a later financial year.".