Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 129

129. After section 48 of the Principal Act the following section is inserted:
Transfer on or after 1 July 1993 of part of entitlement to assessable receipts
Section applies to transfer of part of entitlement to assessable receipts
"48A.(1) This section applies if, on or after 1 July 1993, a person enters
into a transaction that has the effect of transferring part only of the
person's entitlement to derive, after the transfer, assessable receipts in
relation to a petroleum project.
Definitions   "(2) In this section:


   (a)  the person is called the 'vendor';

   (b)  the person, or each of the persons, to whom the entitlement to derive
        assessable receipts is transferred is called a 'purchaser';

   (c)  the time at which the transaction is entered into is called the
        'transfer time';

   (d)  the financial year in which the transaction is entered into is called
        the 'transfer year';

   (e)  the part of the vendor's entitlement to derive assessable receipts
        that is being transferred, when expressed as a percentage of the whole
        of the vendor's entitlement to derive assessable receipts in relation
        to the project (as determined before the transfer time), is called the
        'transfer percentage'.
Transfer time may be before vendor's first year of tax   "(3) The transfer
time may be before the vendor's first year of tax in relation to the petroleum
project.
Subsections (5) to (10) have effect for purposes of this Act   "(4) If this
section applies, subsections (5) to (10) have effect for the purposes of this
Act (including this section). Purchaser taken to have derived receipts,
incurred expenditure etc.

"(5) The purchaser, or each of the purchasers in proportion to its acquired
entitlement to assessable receipts, is taken:

   (a)  to have derived the transfer percentage of any assessable receipts
        that, if the transfer year had ended immediately before the transfer
        time, would have been assessable receipts derived by the vendor in
        relation to the project in the transfer year; and

   (b)  to have incurred the transfer percentage of any deductible expenditure
        (other than class 2 augmented bond rate exploration expenditure or
        class 2 GDP factor expenditure), in relation to the project that, if
        the transfer year had ended immediately before the transfer time,
        would have been such deductible expenditure incurred by the vendor in
        relation to the project in the transfer year; and

   (c)  to have incurred, in relation to the project, the transfer percentage
        of any expenditure that, if the transfer year had ended immediately
        before the transfer time, would, within the meaning of the Schedule,
        have been included in the incurred exploration expenditure amount in
        relation to the vendor, the project and the transfer year or a
        previous financial year; and Note: This is expenditure on which class
        2 augmented bond rate exploration expenditure and class 2 GDP factor
        expenditure are based.

   (d)  to have incurred the transfer percentage of any liability of the
        vendor, and to have paid the transfer percentage of any amounts paid
        by the vendor, in respect of instalments of tax in relation to the
        project during the part of the transfer year that occurred before the
        transfer time. Vendor taken not to have derived receipts, incurred
        expenditure etc.

"(6) The vendor is taken not to have derived, incurred or paid, as the case
requires, the transfer percentage of the receipts, expenditure, liabilities
and amounts to which subsection (5) applies. Time when purchaser taken to have
incurred expenditure to which paragraph (5)(c) applies

"(7) Expenditure that the purchaser, or any of the purchasers, is taken by
paragraph (5)(c) to have incurred is taken to have been so incurred at the
time when the vendor incurred it, or is taken to have incurred it. Treatment
of property used in relation to the project

"(8) As regards property used in relation to the project:

   (a)  the vendor is taken not to have derived any assessable property
        receipts in relation to the transaction because of the transfer of any
        property held by the vendor that was being used in relation to the
        project at the transfer time; and

   (b)  the purchaser or purchasers are taken not to have incurred any
        eligible real expenditure in relation to the transaction because of
        the transfer of any such property. Application of sections 27, 28 and
        29

"(9) In any application of section 27, 28 or 29 after the transfer time, the
purchaser, or each of the purchasers in proportion to its acquired entitlement
to assessable receipts, is taken to have incurred the transfer percentage of
any eligible real expenditure incurred by the vendor in relation to the
project (including any pre-combination project in relation to the project).
Application of section 40

"(10) In any application of section 40 after the transfer time, the purchaser,
or each of the purchasers in proportion to its acquired entitlement to
assessable receipts, is taken to have brought to account as a receipt of a
kind referred to in section 24, 25, 27, 28 or 29 in relation to the project
(including any pre-combination project in relation to the project) the
transfer percentage of any debt so brought to account by the vendor.".