Section 2BA - Petroleum Resource Rent Tax Assessment Act 1987 - Designated company groups

2BADesignated company groups

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#### 2BA Designated company groups (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.