48ATransfer on or after 1 July 1993 of part of entitlement to assessable receipts

48A 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 (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 uplifted 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 Schedule 1, 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 uplifted exploration expenditure and class 2 GDP factor expenditure are based.

(ca) if section 35E did not apply immediately before the transfer time—to have incurred starting base expenditure, in relation to the project, of the transfer percentage of the starting base amount in relation to the vendor’s interest; and
(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.