Document ID: chunk:federal_register_of_legislation:C2015C00124:clause:6_9:p2
Version: federal_register_of_legislation:C2015C00124
Segment Type: clause
Provision Reference: sch 6 cl 9 (pt 2/2)
Character Range: 100809–102529

to be excluded expenditure may be reduced under subsection (1D) of this section.
 (1A) This subsection applies to the other person in relation to a payment if, at the time the payment is made, the other person:
 (a) holds an interest in the petroleum project to which the operations, facilities or other things relate; or
 (b) is connected (within the meaning of section 328‑125 of the Income Tax Assessment Act 1997) with the eligible person.
 (1B) The amount of the other person's expenditure referred to in paragraph (1)(d) is taken not to exceed so much of the amount of the eligible person's payment as:
 (a) is a payment to procure the carrying on or providing of the operations, facilities or other things; and
 (b) does not relate to use of property on which the other person has incurred capital expenditure.
 (1C) If:
 (a) subsection (1A) applies to the other person in relation to the payment; and
 (b) the other person, to any extent, procures for:
 (i) the eligible person; or
 (ii) the eligible person and one or more persons who hold an interest in the project;
  the operations, facilities or other things from a third person who is connected (within the meaning of section 328‑125 of the Income Tax Assessment Act 1997) with the other person;
the references in paragraph (1)(d) and subsection (1B) to the other person's expenditure are taken (to the extent that carrying on or providing the operations, facilities or other things was procured from the third person) to be references to the third person's expenditure.
 (1D) If the other person's expenditure is reduced because of subsection (1B), sections 37, 38, 39 and 44 apply in relation to that expenditure as if it were reduced to the same extent.