Commonwealth Consolidated Acts

PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987 - SECT 40

  (1)   Where:

  (a)   a debt is a bad debt and is written off as such by a person during a financial year; and

  (b)   the debt has been brought to account by the person as a receipt of a kind referred to in section   24, 25, 27, 28 or 29 derived by the person in any financial year in relation to a petroleum project;

then, at the time at which the debt is written off and in relation to:

  (c)   the petroleum project; or

  (d)   if, at that time, there is a combined project in relation to which the petroleum project is a pre - combination project--the combined project;

the person shall be taken for the purposes of this Act to have incurred an amount of:

  (e)   where at or before the time at which the debt is written off the person has not incurred any general project expenditure or closing - down expenditure in relation to the petroleum project or the combined project (including any pre - combination project in relation to the project)--exploration expenditure;

  (f)   where at or before the time at which the debt is written off the person has incurred general project expenditure, but has not incurred any closing - down expenditure, in relation to the petroleum project or the combined project (including any pre - combination project in relation to the project)--general project expenditure; or

  (g)   where at or before the time at which the debt is written off the person has incurred closing - down expenditure in relation to the petroleum project or the combined project--closing - down expenditure;

equal to the amount of the debt.

  (2)   If a debtor, after incurring a debt that has been brought to account as mentioned in paragraph   (1) (b), becomes bankrupt or executes a personal insolvency agreement for the benefit of creditors:

  (a)   where, in the opinion of the Commissioner, no amount will be paid on account of the debt--the debt; or

  (b)   where, in the opinion of the Commissioner, an amount less than the amount of the debt will be paid on account of the debt--so much of the debt as exceeds the amount that, in the opinion of the Commissioner, will be so paid;

shall be deemed to be a bad debt.

  (3)   Where a person receives an amount in respect of a debt to which subsection   (1) applies, that amount shall for the purposes of this Act be taken to be a receipt of the kind referred to in paragraph   (1)(b) derived by the person in relation to:

  (a)   the petroleum project referred to in that paragraph; or

  (b)   if, at the time at which the amount is received, there is a combined project in relation to which the petroleum project referred to in that paragraph is a pre - combination project--the combined project.