58MSpecial translation rules—events that happened before the withdrawal of an election took effect

58M Special translation rules—events that happened before the withdrawal of an election took effect

Certain expenditure incurred on the day when section 58B election takes effect (1) If: (a) a person withdraws an election under section 58B with effect from immediately after the end of a financial year; and (b) the person does not make a fresh election under section 58B with effect from the start of the next financial year; and (c) any of the following subparagraphs applies: (i) under subsection 33(3), an amount is taken to be class 1 augmented bond rate general expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (ii) under subsection 34(3), an amount is taken to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (iii) under subsection 34A(4), an amount is taken to be class 2 uplifted general expenditure incurred by the person on the first day of the next financial year; (iv) under subsection 35C(5), an amount is taken to be resource tax expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (vi) under subsections 35E(1) and (1B), or under subsection 35E(3), an amount is taken to be starting base expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (vii) the person has a starting base amount in relation to an interest in a petroleum project; and (d) section 10 requires that the amount be translated into Australian currency; the amount is to be translated into Australian currency at the exchange rate applicable at the start of the next financial year. Class 2 uplifted exploration expenditure, class 2 GDP factor expenditure and transferable exploration expenditure (2) For the purpose of working out: (a) the class 2 uplifted exploration expenditure; or (b) the class 2 GDP factor expenditure; or (c) the transferable exploration expenditure; that a person is taken to have incurred in a financial year in relation to a petroleum project, if: (d) a person withdraws an election under section 58B with effect from immediately after the end of an earlier financial year; and (e) the person has not made an election under section 58B with effect from the start of an intervening financial year; and (f) section 10 requires that an amount of expenditure be translated into Australian currency; and (g) the expenditure was actually incurred before the withdrawal of the election took effect; the expenditure is to be translated into Australian currency at the exchange rate applicable at the start of the next financial year after that earlier financial year.