Document ID: chunk:federal_register_of_legislation:F2023C00402:front:0:p72
Version: federal_register_of_legislation:F2023C00402
Segment Type: other
Provision Reference: 
Character Range: 186374–190201

compulsory to pay the base amount in addition to penalty fees and interest)
  (b)     What is the primary purpose?                                                                                                                                                                   Non-financial purpose (eg equitable allocation of a public resource)                                                                                                                                                               Generating income for the public sector entity (eg very high proceeds in relation to the costs incurred might be indicative of a tax element)
  (c)     Does the arrangement create direct rights to use or access an asset for the payer, or perform an activity, and, depending on the type of arrangement, direct obligations of the payee?         Creates direct rights for the payer (licensee), and could create direct obligations for the payee (licensor)                                                                                                                       No specific rights for the payer or obligations for the payee
  (d)     Does the arrangement give the payer specific permission that must be obtained prior to performing an activity or using or accessing a resource of the payee that would otherwise be unlawful?  Yes                                                                                                                                                                                                                                No
  (e)     Does the arrangement transfer control of the payee's underlying asset?                                                                                                                         No                                                                                                                                                                                                                                 Not relevant

G4 A not-for-profit public sector entity may enter into an arrangement with a dual purpose of issuing a licence and imposing a tax. Consistent with paragraph F28 of AASB 15, the rebuttable presumption is for the not-for-profit public sector licensor to allocate the transaction price wholly to the promise to issue a licence.

G5 The presumption is rebutted if one of the following criteria are satisfied:

          (a)                    the transaction price is partially refundable in the event the entity does not issue the licence; or

          (b)                   a similar activity effected through a different transaction or organisational structure is subject to a tax, providing evidence of the composite nature of the arrangement or there is other evidence supporting that there is a tax not specific to the licencing arrangement.

G6 Where the presumption is rebutted the entity shall disaggregate the transaction price and account for the component that relates to the licence in accordance with AASB 15. The remainder of the transaction price that is determined to be a tax shall be accounted for in accordance with AASB 1058. Whether the element not related to the licence is material, and therefore needs to be accounted for separately, shall be assessed in relation to the individual arrangement, without reassessment at an aggregate or portfolio level.
G7 For example, a casino licence permits gaming activities to be conducted. Similar gaming activities are also conducted online by third parties who are not subject to a casino or any other kind of licence and are taxed at a rate of 10 per cent of proceeds received. This provides evidence that the casino arrangement contains both a licence and a tax and that the presumption in G4 should be rebutted. The tax rate charged to the third party