Document ID: chunk:federal_register_of_legislation:C2024C00818:section:97:p1
Version: federal_register_of_legislation:C2024C00818
Segment Type: section
Provision Reference: s 97 (pt 1/3)
Character Range: 238870–241588

97  Notional tax amount
 (1) Subject to subsection (2), the notional tax amount of a person, in relation to a petroleum project and an instalment period in a year of tax, is the amount worked out in accordance with the formula:

where:
Current period liability means the amount worked out under subsection (1A).
Previous period liability means the amount worked out under subsection (1B).
 (1A) For the purposes of subsection (1), the current period liability is an amount equal to the tax that would be payable by the person in relation to the petroleum project if:
 (a) the instalment period were the year of tax; and
 (aa) without limiting paragraph (a)—any instalment transfers in relation to the instalment period were annual transfers in relation to the year of tax; and
 (b) the amounts that were taken by subsections 33(3), 34(3), 34A(4), 35(3), 35C(5), 35E(3), 35F(2) and 36(1) (including because of section 48) to be incurred by the person in relation to the project on the first day of the year of tax were instead only the instalment percentages of those amounts; and
 (c) the amounts that would, for the purposes of Schedule 1, be the incurred exploration expenditure amounts in relation to financial years before the year of tax were instead only the instalment percentages of those amounts.
Note: Division 3A of Part V may require or permit the transfer (by instalment transfer) of transferable exploration expenditure in relation to instalment periods: see section 45E.
 (1AA) If the whole or a part of the assessable petroleum receipts that would be taken into account in working out the current period liability were determined under paragraph 24(1)(d) or (e) (the special calculation provisions), then, in calculating the current period liability under subsection (1A):
 (a) any assessable petroleum receipts determined under the special calculation provisions are to be excluded; and
 (b) the amount worked out in accordance with the regulations in respect of those assessable petroleum receipts is to be included.
 (1B) For the purposes of subsection (1), the previous period liability is an amount equal to the sum of the notional tax amounts (if any) worked out under subsection (1) in relation to the person, the petroleum project and any earlier instalment periods in the year of tax.
 (1BA) However, if a person was taken under subsection 22(3) or (4) to have a taxable profit in relation to the project and the financial year immediately preceding the year of tax, then:
 (a) subsection (1) of this section does not apply to the person in relation to the project and the year of tax; and
 (b) subject to subsection (2) of this section, the notional tax amount of the person, in relation to