Section 39 - Petroleum Resource Rent Tax Assessment Regulation 2015 - Capital costs incurred for a unit of property completed over several years

Section 39 - Petroleum Resource Rent Tax Assessment Regulation 2015 - Capital costs incurred for a unit of property completed over several years | Zoe

39 Capital costs incurred for a unit of property completed over several years

(1) This section applies to an included capital cost for the taxpayer if the cost is incurred in relation to a unit of property: (a) that is constructed over a period of time; and (b) for which the last capital cost is incurred in a later financial year (the final cost year). (2) For the purposes of step 8 of the residual pricing method, the included capital cost: (a) is augmented for the number of calendar years between the start date for the included capital cost and 1 January in the final cost year; and (b) is taken to be incurred in the final cost year.

Note 1: The start date for the included capital cost may have been affected by subsection 37(2).

Note 2: The steps of the method work sequentially. So, (assuming this subsection applies to the cost) the next applicable step or provision that refers to the cost will be referring to:

(a) the cost as augmented under this subsection; and
(b) a start date for the cost of 1 January in the final cost year.

39Capital costs incurred for a unit of property completed over several years

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39 Capital costs incurred for a unit of property completed over several years