Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 18/95)
Character Range: 5594815–5597518

which the *Timor Sea Maritime Boundaries Treaty entered into force or a later income year, calculate your deduction under section 40‑830 or 40‑832 for the project pool as follows:
 (a) calculate the amount of the deduction as if none of those project amounts had been allocated to the project pool;
 (b) add to that amount the following:
 (i) for the initial income year—40% of the sum of those project amounts;
 (ii) for the next income year—40% of that sum;
 (iii) for the income year after that next income year—20% of that sum.

417‑50  Transferring entitlement to deductions relating to a project pool
 (1) You may choose to transfer, to a *corporate tax entity, either or both of the following:
 (a) all or part of your entitlement to deductions under Division 40 in relation to the declines in value of the single asset mentioned in subsection 417‑35(4) (including future declines in value but not including declines in value that have already been deducted under that Division);
 (b) all or part of so much of your entitlement to deductions under section 40‑830 or 40‑832 as arises because of the operation of section 417‑45.
 (2) The choice:
 (a) must be in the *approved form; and
 (b) must be made no later than the day you lodge your *income tax return for the first income year for which all or part of your entitlement is to be transferred.
 (3) The choice cannot be revoked.
 (4) Only one choice can be made under this section in relation to the same part of the entitlement.
 (5) If you choose under this section to transfer to another entity all or part of your entitlement:
 (a) the other entity can make deductions arising from that entitlement or part; and
 (b) at the time of the choice, a *franking credit arises in the *franking account of the other entity; and
 (c) you can no longer make deductions arising from that entitlement or part.
 (6) The amount of the *franking credit under paragraph (5)(b) is an amount equal to the amount of the deduction transferred multiplied by the standard corporate tax rate (within the meaning of Part IVA of the Income Tax Assessment Act 1936).

Subdivision 417‑C—Capital gains tax

Table of sections
417‑65 CGT events not created by Timor Sea Maritime Boundaries Treaty entering into force
417‑70 Tax treatment of consideration for transferred entitlement to deductions or tax loss
417‑75 Membership interests affected by transfer of entitlement to deductions or tax loss

417‑65  CGT events not created by Timor Sea Maritime Boundaries Treaty entering into force
  If:
 (a) before the *Timor Sea Maritime Boundaries Treaty entered into force, you owned an intangible *CGT asset connected with undertaking *transitioned petroleum activities;