Document ID: chunk:federal_register_of_legislation:C2024A00067:clause:2_51a
Version: federal_register_of_legislation:C2024A00067
Segment Type: clause
Provision Reference: sch 2 cl 51A
Character Range: 61519–63052

51A  The bases for identifying tax benefits
 (1) This section applies to deciding, under section 51, whether any of the following (tax effects) would have occurred, or might reasonably be expected to have occurred, if an arrangement had not been entered into or carried out:
 (a) an amount of assessable receipts being derived by the person in relation to a petroleum project;
 (b) an amount of deductible expenditure not being incurred by the person in relation to a petroleum project.
 (2) A decision that a tax effect would have occurred if the arrangement had not been entered into or carried out must be based on a postulate that comprises only the events or circumstances that actually happened or existed (other than those that form part of the arrangement).
 (3) A decision that a tax effect might reasonably be expected to have occurred if the arrangement had not been entered into or carried out must be based on a postulate that is a reasonable alternative to entering into or carrying out the arrangement.
 (4) In determining for the purposes of subsection (3) whether a postulate is such a reasonable alternative:
 (a) have particular regard to:
 (i) the substance of the arrangement; and
 (ii) any result or consequence for the person that is or would be achieved by the arrangement (other than a result in relation to the operation of this Act); but
 (b) disregard any result in relation to the operation of this Act that would be achieved by the postulate for any person (whether or not a party to the arrangement).