Terms defined in section 245a of this Act (other than the term ‘income tax’) have the meanings so defined unless the context otherwise requires; and

Any reference in sections 191e to 191wc of this Act to—

Terms defined in sections 394a(1), 394zk(1), 394zzm(1), and 394zzy(1) of this Act shall have the meanings as so defined:

The definition of the term ‘dividends’ in section 394zk(2) of this Act shall, notwithstanding paragraph (a) of this subsection, apply for the purposes of section 191t of this Act:

Sections 394a(3) and (5), 394zk(4), and 394zzy(3) of this Act shall apply as if references in those provisions—

At that time those companies are a wholly-owned group of companies; and

If at that time any of the companies has a non-standard balance date, at that time all the companies have the same non-standard balance date; and

If at that time any of the companies is a qualifying company within the meaning of section 393b of this Act, at that time all the companies are qualifying companies; and

At that time, no shares in those companies have—

in either case for the purpose, or for purposes including the purpose, of enabling the companies to be entitled to be members of the same consolidated group so as to defeat the intent and application of sections 191c to 191wc of this Act.

Nominate one of the companies as agent of the consolidated group for the purposes of this Act; and

Contain an agreement by each company to be jointly and severally liable with other members of the consolidated group for any income tax payable by the consolidated group (which agreement may be expressed as subject to, or in terms of an approval given under, the provisions of section 191l(2) to (5) of this Act).

The beginning of the income year immediately succeeding that in which the notice is received by the Commissioner; or

If the notice—

Any 2 or more companies that have elected under this section to form a consolidated group are each incorporated or otherwise formed during the same income year; and

The notice of election—

Any 2 or more companies have in any income year elected under this section to form a consolidated group during that income year; and

The notice of election—

In the case of companies to which subsection (3)(a) of this section would apply, the companies remain eligible companies entitled to be members of the same consolidated group at the beginning of the income year referred to in that provision; or

In the case of companies to which any of subsections (3)(b), (4), and (5) of this section would apply, the companies (once in existence) are eligible companies entitled to be members of the same consolidated group throughout the period that—

The company shall be treated as being at that time a member only of the group of which it was first a member; or

Where paragraph (a) of this subsection does not apply by virtue of a company becoming a member of 2 or more groups simultaneously, the company shall be treated as being a member only of such one of the consolidated groups as the Commissioner may specify having regard to all the circumstances.

Any 2 or more companies have formed a consolidated group; and

At least one company remains a member of that consolidated group,—

The beginning of the income year immediately succeeding the income year in which the notice is received by the Commissioner; or

If the notice—

the beginning of that income year.

An eligible company makes an election to join and be treated as a member of a consolidated group in the income year in which that company is incorporated or otherwise formed; and

The notice of election—

A company first becomes entitled to be a member of a specified consolidated group at any time during an income year; and

The notice of election to join the group—

In the case of a company to which subsection (3)(a) of this section would apply,—

In the case of a company to which any of subsections (3)(b), (4), and (5) of this section would apply, the company is an eligible company entitled to be a member of the consolidated group throughout the period that—

The company so elects, by notice in writing to the Commissioner in such form as the Commissioner may approve; or

The company ceases to be an eligible company; or

The company, not being the nominated company for the consolidated group, ceases to be entitled to be a member of the same consolidated group as the nominated company; or

The company is a member of a consolidated group that has ceased to have a nominated company.

The beginning of the income year in which the notice of election is received by the Commissioner (or, where appropriate, such later time as the company was first treated as being a member of the group); or

If the company so specifies in the notice of election, the beginning of the income year immediately succeeding that in which the notice was furnished to the Commissioner (or, where appropriate, such earlier time as the company is treated under this section as having ceased to be a member of the group).

The beginning of the income year during which the company ceased to be an eligible company (or, where appropriate, such later time as the company was first treated as being a member of the group); or

If subsection (6) of this section applies, the beginning of the day on which the company ceased to be an eligible company.

The beginning of the income year during which the cessation occurred (or, where appropriate, such later time as the company was first treated as being a member of the group); or

If subsection (6) of this section applies in respect of the company, the beginning of the day on which the cessation of entitlement occurred.

The nominated company ceases to be such by reason of being wound up; and

Within 20 working days after that winding up, or within such further period as the Commissioner may allow, the other companies in the group have selected another nominated company and notified the Commissioner accordingly (in which case the selected company shall be treated as the nominated company with effect from the time of the winding

A company which has at any time been a member of a consolidated group first ceases—

at any time during an income year (such time being referred to in this subsection as the time of cessation); and

The company elects, by notice in writing to the Commissioner in such form as the Commissioner may allow, that this subsection should apply with respect to the company, the consolidated group, and the income year; and

The notice is received by the Commissioner within 20 working days after the time of cessation, or within such further period as the Commissioner may allow as reasonable in all the circumstances,—

Nothing in subsections (2) to (4) of this section shall apply to treat the company as having so ceased to be a member with effect from the beginning of the income year in which the winding up occurred; and

Nothing in subsection (6) of this section shall apply to require the furnishing of adequate part year accounts in relation to the company.

Be incorporated in the return of income for the income year furnished to the Commissioner—

Sufficiently detail in accordance with subsection (2) of this section the assessable income, and deductions able to be claimed against assessable income (and where required the income tax payable), of the company in respect of any relevant part of the income year.

The nominated company shall make a single return of income derived in that income year by those companies and those companies shall not make separate returns of income derived in that income year, except to the extent that any such company is not a member of the group for part of the income year; and

That single return of income shall, if the Commissioner so requires, include such form of accounts detailing the separate affairs of each of those companies as the Commissioner may specify; and

For the purposes of determining the availability under this Act of credits against income tax payable by the consolidated group in respect of that income year, the group shall be treated as if it were a single company; and

The Commissioner shall make a single assessment of the income derived by those companies in that income year, and shall not make separate assessments of the income derived by each company in that income year except to the extent that any such company is not a member of the group for part of the income year,—

The assessment is made by the Commissioner after the later of—

The amount of income tax so assessed exceeds the amount (if any) assessed by the Commissioner before that date in respect of the consolidated group and the income year; and

The Commissioner is satisfied that the application of this subsection will not significantly prejudice any recovery or likely recovery of any amount of income tax for the income year, and notifies the company and the consolidated group in writing accordingly.

Subsection (1) of this section shall not apply to impose on any company other than the companies specified in the Commissioner’s written approval joint and several liability for income tax assessed in respect of the consolidated group for the income year to which the approval relates, except to the extent that—

Section 191q(1) of this Act shall not apply to impose on any company other than the companies specified in the Commissioner’s written approval joint and several liability for the amount of provisional tax payable by the consolidated group for the income year to which the approval relates.

Assessable income derived in the relevant period by the company that—

shall not be taken into account except to the extent that—

Any expenditure or loss incurred in the relevant period by the company that—

shall not be taken into account except—

Where any expenditure or loss or depreciation incurred in the relevant period by the company (not being expenditure or loss that is not to be taken into account by virtue of paragraph (b) of this subsection)—

the expenditure or loss or depreciation shall be deductible in calculating the assessable income for the relevant period; and

Where any expenditure or loss or depreciation incurred in the relevant period by the company (not being expenditure or loss that is not to be taken into account by virtue of paragraph (b) of this subsection)—

the expenditure or loss or depreciation shall not be deductible in calculating the assessable income for the relevant period, except to the extent that it is interest in respect of money borrowed from a person that is not a member of the consolidated group and—

Where any profit or gain derived in the relevant period by the company—

the profit or gain shall be treated as assessable income for the relevant period; and

In applying any provision of this Act (such as section 64c(2a)) whose application is dependent upon whether a specified limit is or is not exceeded, the consolidated group shall be treated as if it were a single company.

Any company which is a member of a consolidated group of companies incurs any expenditure or loss; and

That expenditure or loss would, if the group of companies were a single company, be taken into account under this Act in determining the cost of any property; and

But for the application of this subsection, that expenditure or loss would not be taken into account in determining under this Act the cost of any property of a member of the consolidated group,—

Property in respect of which the transferor has claimed in income years prior to, or will claim in, the income year in which the disposition takes place a deduction for an amount—

in calculating the assessable income of the transferor (such property being in this section referred to as depreciating property); or

Any property (being neither trading stock for either the transferor or the transferee, nor a financial arrangement to which sections 64b to 64l of this Act apply) where, if the transferor or transferee were to dispose of that property for a profit or gain, that profit or gain would (but for this section or section 191m of this Act) be required to be taken into account in calculating the assessable income of the transferor or transferee,—

The transferee shall be deemed to have acquired the property on the day on which it was acquired by the transferor; and

The transferee shall be deemed to have acquired the property from the transferor for consideration equal to the aggregate of the following amounts of expenditure incurred by the transferor in respect of the property before the disposition to the transferee in fact takes place, being in every case expenditure in respect of which no deduction has been allowed under this Act (other than by way of a deduction in respect of the depreciation or amortisation of the acquisition cost of the property under any of sections 108, 137, and 142 of this Act or any other amortisation provisions of this Act):

A company (in this subsection referred to as the transferor)—

But for this subsection, the disposal or cessation would prevent the transferor from being entitled to a deduction under any of sections 128a to 128c of this Act; and

After the disposal or cessation and for the remainder of the income year—

by another company which is a member of the same consolidated group as the transferor for the whole of the income year,—

Section 64f of this Act in respect of the transferor; and

This Act generally in calculating the assessable income of the transferee,—

In any case where the method of calculating income or expenditure in respect of the financial arrangement under section 64c of this Act remains the same notwithstanding the disposition, such amount as will result in the base price adjustment in relation to the transferor calculated in respect of the disposition under section 64f of this Act being—

In any other case, the market value of the financial arrangement at the date of disposition.

Any company (in this subsection referred to as the transferor) disposes of any trading stock to another company (in this subsection referred to as the transferee) that is a member of the same consolidated group when the disposition takes place; and

In any case where the trading stock is not an excepted financial arrangement (as defined in section 64b of this Act),—

In any case where the trading stock was held by the transferor at the beginning of the income year, the value of such trading stock as at the beginning of the income year as determined in accordance with section 85 of this Act; and

In any other case, the cost to the transferor of that trading stock.

A company ceases to be a member of a consolidated group (other than by virtue only of being wound up); and

The company holds any property (whether that property is held as a separate item of property or is part of some other property) which has at any time been the subject of a disposition between members of that consolidated group to which any of subsections (1), (2), (4)(c), and (5) of this section has applied,—

Any property to which that subsection applies is, at the time of the disposition deemed to occur under that subsection, part of or absorbed into some other property; and

Its market value at that time cannot separately be determined,—

Any company (in this subsection referred to as the transferor) disposes of any shares in another company (in this subsection referred to as the related company); and

Either—

The consideration received by the transferor for that disposition is lower than the consideration that would have been received in an arms-length disposition had not any reduction in the value of the net assets of the related company occurred as a result of any one or more dividends, distributions, payments, arrangements, or transactions between the related company and any other company that was at the time of the dividend, distribution, payment, arrangement, or transaction a member of the same consolidated group as the related company,—

Any company joins a consolidated group; and

At the time of joining that consolidated group the company holds any property; and

After joining the consolidated group, the company disposes of the property to another member of the consolidated group; and

Any of subsections (1), (2), (4)(c), and (5) of this section would apply to that disposition but for the application of this subsection; and

After the time of that disposition, the company ceases to be a member of the consolidated group (including by virtue of being wound up); and

It can reasonably be concluded that there was an arrangement having a purpose or effect of defeating the intent and application of sections 191c to 191wc of this Act which involved that company joining the consolidated group, disposing of the property, and ceasing to be a member of the consolidated group,—

That loss shall, subject to subsections (4), (5), and (6) of this section, be deducted from the assessable income, if any, derived in the specified year by the consolidated group so far as that assessable income extends; and

Only so far as it has not been so deducted, shall be eligible to be—

If incurred in 2 or more income years, be deducted in the same order as incurred; and

If incurred in the same income year, be deducted, so far as the assessable income extends,—

Subsection (3) of this section would, except to the extent of the application of this subsection and subsection (6) of this section, require the whole or part of the loss of any company incurred by the company in any income year (in this subsection referred to as the preceding loss year) to be deducted from the assessable income, if any, derived by a consolidated group in a subsequent year (in this subsection referred to as the subsequent year); and

The company was not a member of the same group of companies, for the preceding loss year or any income year falling between the preceding loss year and the subsequent year, as any one or more companies which are members of the consolidated group in the subsequent year,—

The amount of the loss that could be deducted by the company in the subsequent year under section 188 of this Act from its own assessable income (such assessable income being nevertheless calculated in accordance with section 191m(1) of this Act) were it not in that subsequent year a member of a consolidated group; and

The aggregate amount that could be deducted under section 191a of this Act from their own assessable income (such income being nevertheless calculated in accordance with section 191m(1) of this Act) by companies (other than the company) which are members of the consolidated group in the subsequent year if—

Subsection (3) of this section would, except to the extent of the application of this subsection and subsection of this section, require the whole or part of the loss of any company incurred by the company in any income year (in this subsection referred to as the preceding loss year) to be deducted from the assessable income, if any, derived by a consolidated group of companies in a subsequent year (in this subsection referred to as the subsequent year); and

The company was a member of the consolidated group for part only of the subsequent year,—

The excess (if any) of the loss incurred by the company in the preceding loss year and required, but for the application of this subsection and subsection (5) of this section, to be deducted from the assessable income of the consolidated group in the subsequent year over the aggregate of—

The amount (if any), as shown in adequate and sufficiently detailed accounts furnished to the Commissioner with the consolidated group’s return of income for the income year, of the consolidated group’s assessable income for the income year as is reasonably and fairly attributable to the part of the income year during which the company was a member of the consolidated group.

A company is a member of a consolidated group for part only of an income year (in this subsection referred to as the specified year); and

The company is entitled only by virtue of section 188(9) of this Act to claim to carry forward to the specified year and deduct or set off, to the extent of the amount of assessable income derived by the company in part only of the specified year (that part being referred to in this subsection as the continuity period) any loss incurred by the company in any preceding year; and

The company is a member of the consolidated group for the whole or part of the continuity period; and

Adequate and sufficiently detailed accounts have been prepared and furnished to the Commissioner with the consolidated group’s return of income for the specified year, relating to that part of the continuity period during which the company was a member of the consolidated group, which detail sufficiently such part of the assessable income of the consolidated group (that part being referred to in this subsection as the continuity period profit) for the specified year as is reasonably and fairly attributable to that part of the continuity period; and

The loss of the company incurred in the preceding year, to the extent able to be carried forward under section 188 of this Act by virtue of this subsection, is, by virtue of this section, deducted from the assessable income derived in the specified year by the consolidated group,—

A tax credit available for crediting under section 245k(1) of this Act against income tax payable in respect of attributed foreign income of the consolidated group; or

An attributed foreign loss; or

A foreign investment fund loss,—

Any company is a member of a consolidated group in an income year (in this subsection referred to as the specified year); and

The company is entitled—

In the case of such a tax credit, credited against the income tax, if any, payable by the consolidated group in respect of attributed foreign income derived in the specified year in respect of any controlled foreign company or companies resident in the relevant country or territory, so far as that income tax extends; and

In the case of such an attributed foreign loss, deducted from the attributed foreign income, if any, derived in the specified year by the consolidated group in respect of any controlled foreign company or companies resident in the relevant country or territory, so far as that attributed foreign income extends; and

In the case of such a foreign investment fund loss, deducted from the foreign investment fund income, if any, derived in the specified year by the consolidated group, so far as that foreign investment fund income extends,—

Credited against the income tax payable by, or deducted or set off against the income of, the company or any other consolidated group in the specified year; or

Carried forward by the company in accordance with section 245k or section 245m or section 245r of this Act (as the case may be) to any succeeding income year; or

Treated for the purposes of section 245l or section 245n or section 245r of this Act as the case may be, as a credit or loss of the company carried forward to the specified year, in which event such credit or loss may be credited against the income tax payable by or deducted from the income of any other company (other than the consolidated group) subject to and in accordance with the relevant section of this Act.

If resulting from tax payable or losses incurred in 2 or more income years, be credited or deducted, as the case may be, in the same order as the tax was payable or the losses were incurred; and

If resulting from tax payable or losses incurred in the same income year, be credited or deducted, as the case may be, so far as the income tax or relevant income extends,—

Subsection (3) of this section would, except to the extent of the application of this subsection, require the whole or part of any tax credit or loss of any company, resulting from income tax payable by or incurred by the company in any income year (in this subsection referred to as the preceding loss year), to be credited against income tax payable by or deducted from income, if any, derived by a consolidated group of companies in a subsequent year (in this subsection referred to as the subsequent year); and

The company was not a member of the same group of companies, for the preceding loss year or any income year falling between the preceding loss year and the subsequent year, as any one or more companies which are members of the consolidated group in the subsequent year,—

The amount of the credit or loss which could be credited or deducted by the company in the subsequent year under section 245k or section 245m or section 245r of this Act, as the case may be, against its own income tax or from its own income were it not in that subsequent year a member of a consolidated group of companies (such income tax or income being nevertheless calculated in accordance with section 191m(1) of this Act); and

The aggregate amount which could be credited against their own income tax or deducted from their own assessable income (such income tax or income being nevertheless calculated in accordance with section 191m(1) of this Act) under section 245l or section 245n or section 245t of this Act, as the case may be, by companies (other than the company) which are members of the consolidated group in the subsequent year if—

Subsection (3) of this section would, except to the extent of application of this subsection and subsection (5) of this section, require the whole or part of any tax credit or loss of any company resulting from income tax payable by or incurred by the company in any income year (in this subsection referred to as the preceding year) to be credited against income tax payable by or deducted from income, if any, derived by a consolidated group of companies in a subsequent year (in this subsection referred to as the subsequent year); and

The company was a member of the consolidated group for part only of the subsequent year,—

The excess (if any) of the amount of tax credit or loss of the company for the preceding year required, but for the application of this subsection and subsection (5) of this section, to be credited against income tax payable by, or deducted from income of, the consolidated group in respect of the subsequent year over the aggregate of—

The amount (if any), as shown in adequate and sufficiently detailed accounts furnished to the Commissioner with the consolidated group’s return of income for the income year, of the consolidated group’s income tax payable or income for the income year (being income tax payable or income against which such tax credit could be credited or loss could be deducted under this Act) as is reasonably and fairly allocable to the part of the income year during which the company was a member of the consolidated group.

Each company that is a member of a consolidated group in an income year shall, subject to section 191l(5) of this Act, be jointly and severally liable for the amount of provisional tax payable by the consolidated group in respect of income derived in that income year, and that joint and several liability shall be in substitution for any liability of those companies under Part XII of this Act individually in respect of income derived in that income year (to the extent derived while the company is a member of the consolidated group); and

Where any company—

the residual income tax of the consolidated group in the preceding income year shall be deemed, for the purposes of Part XII of this Act (but, in any case where the company is a member for part only of the current income year, only with respect to instalments of provisional tax payable after the date upon which the company becomes a member), to be increased by an amount equal to the residual income tax of that company in the preceding income year multiplied by that fraction which is equal to the fraction of the current income year during which the company is a member of the consolidated group.

Is a member of a consolidated group for all or part of an income year; and

Is not a member of that consolidated group for all or part of the immediately succeeding income year,—

Nil, for the imputation year during which the consolidated group is formed; and

The amount of the closing balance of the imputation credit account for the preceding imputation year (being a credit or debit, as the case may be), in any other case.

The amount of any income tax paid during that imputation year in respect of income derived by that consolidated group, except to the extent that such income tax—

The amount of any income tax deemed under section 383 of this Act to be paid during the imputation year in respect of the income derived by the consolidated group:

The amount of any further income tax paid in respect of the consolidated group during the imputation year under section 191sd(4) of this Act:

The amount of any imputation credit attached to a dividend paid during the imputation year to any company which is at the time of payment a member of the consolidated group:

The amount of any dividend withholding payment credit attached to a dividend paid to any company which is at the time of payment a member of the consolidated group at a time when the consolidated group does not have a dividend withholding payment account:

The amount of any dividend withholding payment paid during the imputation year, at a time when the consolidated group does not have a dividend withholding payment account, by any company which is a member of the consolidated group in respect of any dividend paid to a company which is at the time of payment a member of the consolidated group, except to the extent to which under section 191t(3) of this Act payment of that dividend withholding payment is satisfied by reducing a loss:

Any amount forming all or part of a credit balance in the consolidated group’s—

The amount of any debit arising under section 191va(4)(a) of this Act during the imputation year to the consolidated group’s branch equivalent tax account in respect of a reduction of the amount of dividend withholding payment payable in respect of any dividend derived by any company which is at the time of derivation a member of the consolidated group, except to the extent that the debit arises in respect of a credit arising under section 191va(2)(b) of this Act:

An amount equal to the amount of a debit arising to the imputation credit account under section 191sb(1)(i) of this Act during the imputation year, to the extent that it is subsequently established that the relevant imputation credit should not have been determined to be the subject of an arrangement to which that subsection applies:

The amount of any resident withholding tax deduction deemed under section 327za(b) of this Act to have been derived by any company during the imputation year where the company is at the time of derivation a member of the consolidated group:

The amount forming all or part of a credit balance in the policyholder credit account of the consolidated group that the nominated company elects under section 191wc(3) of this Act during the imputation year to be a credit to the consolidated group’s imputation credit account:

The amount of any credit arising during the imputation year to the imputation credit account under section 191sc(2) of this Act.

In the case of the credits referred to in paragraphs (a), (c), and (f), on the date the relevant tax or dividend withholding payment is paid:

In the case of the credit referred to in paragraph (b), on the date on which notice in writing of the allocation of the tax referred to in section 383 of this Act is given to the Commissioner:

In the case of the credits referred to in paragraphs (d), (e), and (j), on the date the relevant dividend or interest is paid:

In the case of the credits referred to in paragraphs (g), (h), and (k), on the date the amount of the relevant credit arises as a debit to the relevant account:

In the case of the credit referred to in paragraph (i), on the date the relevant debit arose under section 191sb(1)(i) of this Act:

In the case of the credit referred to in paragraph (1), immediately prior to the date the relevant debit referred to in section 191sc(2)(b) of this Act arose to the imputation credit account.

The amount of any imputation credit attached to a dividend paid during the imputation year by any company which is at the time of payment a member of the consolidated group:

The amount of any credit balance in the imputation credit account which the nominated company elects under section 191sd(1) of this Act during the imputation year shall be a credit to the consolidated group’s policyholder credit account:

The amount of any provisional tax allocated by the consolidated group under section 383 of this Act during the imputation year to an underpaid company (as defined in that section):

The amount of any refund of income tax paid during that imputation year in respect of income derived by the consolidated group except to the extent that—

The amount of any allocation debit arising in respect of the imputation year under section 394g(4) of this Act in respect of any company which is at the time of payment of the relevant dividend a member of the consolidated group:

The amount of any—

during the imputation year in respect of a dividend derived by a company, which is at the time of derivation a member of the consolidated group, at a time when the consolidated group does not have a dividend withholding payment account:

The amount of any credit arising during the imputation year to the consolidated group’s branch equivalent tax account under section 191va(2)(a) of this Act:

The amount of any debit which would arise under section 394e(1)(g) of this Act if that provision were to apply, with any necessary modifications, to a consolidated group and its imputation credit account as if it were a single company:

The amount of any further debit arising during the imputation year to the imputation credit account under section 394zg of this Act in relation to an imputation credit determined to be the subject of an arrangement to obtain a tax advantage:

The amount of credit balance, if any, of the imputation credit account where, during the imputation year, the consolidated group ceases to exist:

The amount of any debit arising during the imputation year to the imputation credit account under subsection (5) or subsection (6) of section 191sc of this Act.

In the case of the debit referred to in paragraph (a), on the date the dividend is paid:

In the case of a debit referred to in paragraph (b), on the date the nominated company makes the election:

In the case of a debit referred to in paragraph (c), on the date there is given to the Commissioner notice in writing of the allocation of tax pursuant to section 383 of this Act:

In the case of the debits referred to in paragraphs (d) and (f), on the date the refund is paid:

In the case of a debit referred to in paragraph (e), at the end of the imputation year in respect of which the allocation debit arises:

In the case of a debit referred to in paragraph (g), on the date the credit arises:

In the case of a debit referred to in paragraph (h), at the specified time:

In the case of a debit referred to in paragraph (i), at the end of the imputation year in respect of which it is determined that the arrangement to obtain a tax advantage occurred or commenced:

In the case of a debit referred to in paragraph (j), immediately before the consolidated group ceases to exist:

In the case of a debit referred to in paragraph (k), at the time first referred to in subsection (5) or subsection (6) (as the case may be) of section 191sc of this Act.

Any credit arises to the imputation credit account of a consolidated group in respect of any tax paid, imputation credit attached to a dividend derived, dividend withholding payment credit attached to a dividend derived, or dividend withholding payment paid; or

Any debit arises to the imputation credit account of a consolidated group in respect of any tax refunded, imputation credit attached to a dividend paid, dividend withholding payment refunded, tax credit refunded, or allocation debit arising under section 394g(4) of this Act,—

A company which is at that time a member of a consolidated group has a credit in its individual imputation credit account (such credit being referred to in this subsection as the company credit); and

A debit arises under section 191sb of this Act to be recorded in the imputation credit account of the consolidated group; and

That debit is not offset, determined by applying the procedure set out in section 394e(4)(c) of this Act, against any credit in the consolidated group’s imputation credit account which arose before the date or on the same date upon which the company credit arose,—

In the order in which those credits arose, determined by applying the procedure set out in section 394e(4)(c) of this Act; and

If 2 or more credits arose at the same time,—

A debit would, but for this subsection, arise in the individual imputation credit account of a company which is at that time a member of a consolidated group; and

The arising of that debit would result in or increase a debit balance in the individual imputation credit account of the company,—

A company becomes a member of a consolidated group; and

At that time there is a debit balance in the individual imputation credit account of that company; and

If that time were to be the end of an imputation year, the amount of further income tax payable by that company under section 394l of this Act would be reduced by an amount calculated under section 394l(4a) of this Act,—

An amount equal to the debit so arising shall arise as a credit at that time to be recorded under section 394d of this Act in the company’s imputation credit account; and

That credit shall be treated for the purposes of section 394l(4a) of this Act as a credit arising under section 394d(1) of this Act.

A company has paid any further income tax under section 394l of this Act in respect of a debit balance in its individual imputation credit account; and

The company is entitled under section 394l(5) of this Act to credit that further income tax in payment of any income tax for which the company becomes liable at or after that time; and

The company is at that time a member of a consolidated group —

The nominated company may elect that ah or any part of the credit balance (if any) in the group’s imputation credit account at the time of election shall be a credit to the policyholder credit account and a debit to the group’s imputation credit account, which election shall be made by recording the debit and credit in the respective accounts; and

Section 394fa(3) and (4) of this Act shall apply in the case of any consolidated group with a non-standard balance date with any necessary modifications as if—

The group were a single company; and

The reference in section 394k(2) to such company ceasing to be an imputation credit account company were a reference to the consolidated group ceasing to exist; and

Each reference in those sections to a provision of this Act were, where appropriate, a reference to the equivalent provision applicable to consolidated groups.

It were a single company; and

Each reference to a provision of this Act were a reference to the equivalent provision applicable to consolidated groups; and

Each reference to liability of a company for further income tax, additional tax, or imputation penalty tax were (subject to the application of section 191l(2) to (5) of this Act) a reference to joint and several liability for such tax of each company which is a member of the group at the time the further income tax, additional tax, or imputation penalty tax becomes payable.

Shall apply, with any necessary modifications, in respect of any tax paid by a consolidated group as if—

Shall not apply to limit a refund of income tax payable to a company which is a member of a consolidated group in respect of income tax paid individually by that company to the extent that, if such a refund had been of income tax paid by the consolidated group, section 394m would not have limited the refund; but, where and to the extent that a refund of income tax is paid which would not have been payable but for this paragraph, section 394m(3) of this Act shall apply as if that refund were in respect of tax paid by the consolidated group.

The consolidated group were a single company; and

References to provisions of this Act were references to the equivalent provisions applicable to such equivalent accounts.

A foreign withholding payment dividend is, within the meaning of section 394zm(3) of this Act, paid to a company in respect of an income interest in a controlled foreign company; and

That company is at the time of payment a member of a consolidated group; and

That consolidated group, at the time of payment, maintains a branch equivalent tax account under section 191v of this Act,—

A company is liable to pay dividend withholding payment in respect of a foreign dividend paid to the company during a quarter; and

The company is at the time of payment of the dividend a member of a consolidated group,—

A company is liable to pay dividend withholding payment in respect of a foreign dividend paid to the company during a quarter; and

The company is at the time of payment of the dividend a member of a consolidated group,—

The group has incurred a loss that may be carried forward and deducted from or set off under sections 188 and 191o of this Act against the assessable income, if any, derived by the group during the income year the foreign dividend is paid to the company; or

It has reason to believe that, in respect of the income year in which the foreign dividend is paid to the company, the group will incur a loss that may be carried forward and deducted from or set off under sections 188 and 191o of this Act against the assessable income, if any, derived by the group during the succeeding income year,—

is the amount of the dividend withholding payment payable under section 394zm of this Act; and

is the rate of resident companies income tax, expressed as a percentage, stated in clause 7 of the First Schedule to this Act and applying in respect of the income year that is concurrent with the imputation year in which the quarter for which the liability occurred,—

The amount of the refund to be paid to the company shall not exceed—

Any amount of dividend withholding payment that is not refunded by reason of exceeding any such credit balance shall be credited in payment of any dividend withholding payment payable by the company during the imputation year in which the entitlement to the refund arises, or during any subsequent imputation year.

To the company; or

To any other company which was, at the time of payment of the dividend giving rise to the liability to pay the refunded dividend withholding payment or in respect of the income year in relation to which the refunded income tax was paid, a member of the same consolidated group—

A company has paid dividend withholding payment during an income year; and

At the time of payment of the dividend giving rise to the liability to make such dividend withholding payment the company was a member of a consolidated group,—

The consolidated group has incurred a loss in that income year that may under sections 188 and 191o of this Act be carried forward and deducted from or set off against the assessable income derived by the group in a succeeding income year; and

The consolidated group has furnished a single return under section 191l of this Act for the income year in respect of which the loss was incurred,—

The amount of dividend withholding payment paid during that income year; or

The amount of the loss referred to in paragraph (c) of this subsection, multiplied by the rate of resident companies income tax referred to in item b of the formula stated in this subsection; or

The credit balance of the group’s dividend withholding payment account at the end of the most recently ending imputation year,—

is the amount of the refund paid to the company; and

is the rate of resident companies income tax, expressed as a percentage, stated in clause 7 of the First Schedule to this Act and applying in respect of the income year that is concurrent with the imputation year referred to in paragraph (g) of this subsection.

Shall maintain a dividend withholding payment account for an imputation year if, in that imputation year, any company which is member of that consolidated group at any time in that imputation year maintains a dividend withholding payment account; and

May at any time elect to maintain a dividend withholding payment account for an imputation year,—

The nominated company for the group shall notify the Commissioner of that fact in writing within 21 days after the date of the election, or within such further time as the Commissioner may allow in any case or class of cases; and

The group shall maintain a dividend withholding payment account with effect from the date of the election and, subject to subsection (4) of this section, for every imputation year subsequent to that year in which the election was made.

Nil, for the imputation year during which the consolidated group commences to maintain a dividend withholding payment account; and

The amount of the closing balance of the dividend withholding payment account for the preceding imputation year (being a credit or debit, as the case may be), in any other case.

In any case where the nominated company for the group has elected to maintain a dividend withholding payment account, may only be made during an imputation year subsequent to the imputation year in which the election to maintain the account was made; and

Shall be of no effect if the group is required to maintain a dividend withholding payment account under subsection (1)(a) of this section in respect of the imputation year from the commencement of which the election to cease would otherwise take effect; and

Shall be of no effect unless—

The amount of dividend withholding payment paid during the year by any company that is a member of the consolidated group in respect of a dividend paid to a company which is at the time of payment of the dividend a member of the consolidated group, except where and to the extent that—

The amount of any dividend withholding payment credit attached to a dividend paid during the imputation year to a company which is at the time of payment a member of the consolidated group:

The amount of any further dividend withholding payment paid during the imputation year in respect of the group’s dividend withholding payment account under section 394zzf of this Act:

The amount of any debit arising to the account pursuant to section 191ub(1)(h) of this Act, to the extent that it is subsequently established that the relevant dividend withholding payment credit should not have been determined to be the subject of an arrangement to which that paragraph applies:

The amount of any credit arising during the imputation year to the dividend withholding payment account under section 191uc(2) of this Act.

In the case of the credits referred to in paragraphs (a), (b), and (c), on the date the relevant dividend withholding payment, dividend, or further dividend withholding payment is paid:

In the case of a credit referred to in paragraph (d), on the date that the relevant debit under section 191ub(1)(h) of this Act arose:

In the case of the credit referred to in paragraph (e), immediately before the relevant debit referred to in section 191uc(2)(b) of this Act arose to the dividend withholding payment account.

The amount of any dividend withholding payment credit attached to a dividend paid during the imputation year by any company which is, at the time of payment, a member of the consolidated group:

The amount of any credit balance of the dividend withholding payment account that the nominated company for the consolidated group elects in accordance with section 191ud(2) of this Act during the imputation year shall be a credit to the policyholder credit account of the consolidated group:

Any amount forming all or part of an end of year balance in the account that the nominated company for the consolidated group elects in accordance with section 191ud(7) of this Act to be a credit to the imputation credit account of the consolidated group:

The amount of any refund of dividend withholding payment paid during the imputation year under section 394zo of this Act in respect of a dividend withholding payment paid in respect of a dividend paid to a company which at the time of payment of the dividend was a member of the consolidated group, except that, where the refund is in respect of a dividend withholding payment paid before the date that a debit arises under paragraph (h) of this subsection, a debit shall not arise to the extent that the amount of the refund does not exceed the amount of the debit that arises on that date:

The amount of any credit of tax refunded under section 394zp(1)(c) of this Act in respect of a dividend paid to a company which is at the time of payment a member of the consolidated group:

The amount of any allocation deficit debit arising in the account under section 394zy of this Act in respect of any company which is at the time of payment of the relevant dividend a member of the consolidated group:

The amount of any allocation deficit debit arising in the account under section 394zy(4a) of this Act:

The amount of any further debit arising during the imputation year to the dividend withholding payment account under section 394zg of this Act in relation to a dividend withholding payment credit determined to be the subject of an arrangement to obtain a tax advantage:

The amount of any debit that would arise under section 394zw(1)(f) of this Act if that provision were to apply, with any necessary modifications, to a consolidated group and its dividend withholding payment account as if it were a single company:

The amount of the credit balance, if any, of the dividend withholding payment account where the consolidated group ceases to maintain a dividend withholding payment account:

The amount of any debit arising during the imputation year to the dividend withholding payment account under section 191uc(5) of this Act.

In the case of a debit referred to in paragraph (a), on the date the dividend is paid:

In the case of a debit referred to in paragraph (b), on the date the company makes the election in accordance with section 191ud(2) of this Act:

In the case of a debit referred to in paragraph (c), at the end of the imputation year in which there was the credit balance:

In the case of the debits referred to in paragraphs (d) and (e), on the date the refund is paid:

In the case of the debits referred to in paragraphs (f) and (g), at the end of the imputation year in respect of which the allocation deficit debit arises:

In the case of a debit referred to in paragraph (h), at the end of the imputation year in respect of which it is determined under section 394zg of this Act that the tax advantage arrangement occurred or commenced:

In the case of a debit referred to in paragraph (i), at the specified time:

In the case of a debit referred to in paragraph (j), immediately before the consolidated group ceases to maintain a dividend withholding payment account:

In the case of a debit referred to in paragraph (k), at the time first referred to in section 191uc(5) of this Act.

Any credit arises to the dividend withholding payment account of a consolidated group in respect of any dividend withholding payment paid or dividend withholding payment credit attached to a dividend derived; or

Any debit arises to the dividend withholding payment account in respect of any dividend withholding payment credit attached to a dividend paid, any dividend withholding payment or tax credit refunded, or any allocation debit arising under section 394g(4) of this Act,—

A company which is at that time a member of a consolidated group has a credit in its individual dividend withholding payment account (such credit being in this section referred to as the company credit); and

A debit arises under section 191ua of this Act to be recorded in the dividend withholding payment account of the consolidated group; and

That debit is not offset, determined by applying the procedure set out in section 394zw(4)(c) of this Act, against any credit in the consolidated group’s dividend withholding payment account which arose before the date or on the same date upon which the company credit arose—

In the order in which those credits arose, determined by applying the procedure set out in section 394zw(4)(c) of this Act; and

If 2 or more credits arose at the same time,—

so far as the relevant debit to the group’s dividend withholding payment account extends and no further.

A debit would, but for this subsection, arise in the individual dividend withholding payment account of a company which is at that time a member of a consolidated group; and

The arising of that debit would result in or increase a debit balance in the individual dividend withholding payment account of the company,—

A company has paid any further dividend withholding payment under section 394zzf of this Act in respect of a debit balance in its individual dividend withholding payment account; and

The company is entitled under section 394zzf(5) of this Act to credit that further dividend withholding payment in payment of any dividend withholding payment for which the company becomes liable at or after that time; and

The company is at that time a member of a consolidated group —

The company is a member of a consolidated group; and

The consolidated group maintains a dividend withholding payment account.

The nominated company for that consolidated group may elect that all or any part of the credit balance (if any) in the group’s dividend withholding payment account at the time of election shall be a credit to the group’s policyholder credit account and a debit to the group’s dividend withholding payment account, which election shall be made by recording the debit and credit in the respective accounts; and

Section 394zxa(3) and (4) of this Act shall apply in the case of a consolidated group with a non-standard balance date with any necessary modifications as if—

Each reference to the company were a reference to the consolidated group; and

Each reference to a provision of this Act were a reference to the equivalent provision of this section or of sections 191t to 191uc of this Act applicable to consolidated groups,—

The group were a single company; and

Each reference in those sections to a provision of this Act were, where appropriate, a reference to the equivalent provision applicable to consolidated groups.

The group were a single company; and

Each reference to a provision of this Act were a reference to the equivalent provision applicable to consolidated groups; and

Each reference to liability of a company for further dividend withholding payment, dividend withholding payment penalty tax, and additional tax were (subject to the application of section 191l(2) to (5) of this Act) a reference to joint and several liability for such tax of each company which is a member of the group at the time the further dividend withholding payment, dividend withholding payment penalty tax, or additional tax becomes payable.

Shall maintain a branch equivalent tax account for an imputation year if, in that imputation year, any company which is a member of that consolidated group at any time in that imputation year maintains a branch equivalent tax account; and

May at any time elect to maintain a branch equivalent tax account for an imputation year,—

The nominated company for the group shall notify the Commissioner of that fact in writing within 21 days after the date of the election, or within such further time as the Commissioner may allow in any case or class of cases; and

The group shall maintain a branch equivalent tax account with effect from the date of the election and, subject to subsection (3) of this section, for every imputation year subsequent to the year in which the election was made.

In any case where the nominated company for the group has elected to maintain a branch equivalent tax account, may only be made during an imputation year subsequent to the imputation year in which the election to maintain the account was made; and

Shall be of no effect if the group is required to maintain a branch equivalent tax account under subsection (1)(a) of this section in respect of the imputation year from the commencement of which the election to cease would otherwise take effect; and

Shall be of no effect unless the annual group imputation return required in respect of the imputation year in which the election was made is furnished within the time provided for in section 394j of this Act.

Nil, for the imputation year during which the consolidated group commences to maintain a branch equivalent tax account; and

The amount of the closing balance of the branch equivalent tax account for the preceding imputation year (being a credit or debit as the case may be), in any other case.

An amount calculated in accordance with the following formula:

where—

Where the amount of any attributed foreign income derived by a consolidated group during an income year is offset against any loss incurred by the consolidated group, or, under section 191a(2) of this Act, offset against the loss of a company not included in the same consolidated group for that income year, an amount calculated in accordance with the following formula—

The amount of any credit arising during the imputation year to the branch equivalent tax account under section 191vb(2) of this Act.

In the case of the credits referred to in paragraphs (a) and (b) of that subsection, on the date on which is filed a return of income for the consolidated group for the income year referred to in those paragraphs:

In the case of the credit referred to in paragraph (c) of that subsection, immediately before the date the relevant debit referred to in section 191vb(2)(b) of this Act arose to the branch equivalent tax account.

The amount of any credit balance in the account that the nominated company for the consolidated group elects in accordance with section 191vc(2) of this Act to use to reduce an amount of dividend withholding payment deductible under sections 394zl and 394zm of this Act by any company which is, at the time of payment of the dividend giving rise to the liability to pay the dividend withholding payment, a member or the consolidated group:

The amount of any credit balance in the account that the nominated company for the consolidated group elects in accordance with section 191vc(1) of this Act to be a credit to the group’s imputation credit account:

An amount equal to any refund of income tax to the extent that the refund is attributable to income tax paid in relation to attributed foreign income derived by the consolidated group in respect of one or more income interests in controlled foreign companies, except that, where the refund is in respect of income tax paid before the date that a debit arises under paragraph (d) of this subsection, a debit shall not arise to the extent that the amount of the refund does not exceed the amount of the debit that arises on that date:

The amount of any debit which would arise under section 394zzp(3)(d) of this Act if that provision were to apply, with any necessary modifications, to a consolidated group and its branch equivalent tax account as if it were a single company:

The amount of any credit balance of the branch equivalent tax account where, during the imputation year, the consolidated group ceases to maintain a branch equivalent tax account:

The amount of any debit arising during the imputation year to the branch equivalent tax account under section 191vb(5) of this Act.

In the case of a debit referred to in paragraph (a) of that subsection, on the date by which the relevant company is required by section 394zn of this Act to pay to the Commissioner the dividend withholding payment that is reduced by the relevant amount of the credit balance:

In the case of a debit referred to in paragraph (b) of that subsection, on the date the nominated company elects in accordance with section 191vc(1) of this Act to credit the consolidated group’s imputation credit account:

In the case of a debit referred to in paragraph (c) of that subsection, on the date the refund is paid:

In the case of a debit referred to in paragraph (d) of that subsection, at the specified time:

In the case of a debit referred to in paragraph (e) of that subsection, immediately before the group ceased to maintain the branch equivalent tax account:

In the case of a debit referred to in paragraph (f) of that subsection, at the time first referred to in section 191vb(5) of this Act.

Any credit arises to the branch equivalent tax account of a consolidated group in respect of any attributed foreign income; or

Any debit arises to the branch equivalent tax account of a consolidated group in respect of any refund of income tax paid in respect of attributed foreign income,—

A company which is at that time a member of a consolidated group has a credit in its individual branch equivalent tax account maintained in accordance with section 394zzn of this Act (such credit being referred to in this subsection as the company credit); and

A debit arises under section 191va of this Act to be recorded in the branch equivalent tax account of the consolidated group; and

That debit is not offset, determined by applying the procedure set out in section 394zzp(6)(c) of this Act, against any credit in the consolidated group’s branch equivalent tax account which arose before the date or on the same date upon which the company credit arose—

In the order in which those credits arose, determined by applying the procedure set out in section 394zzp(6)(c) of this Act; and

If 2 or more credits arose at the same time,—

so far as the relevant debit to the group’s branch equivalent tax account extends and no further.

A debit would, but for this subsection, arise in the individual branch equivalent tax account of a company which is at that time a member of a consolidated group; and

The arising of that debit would result in or increase a debit balance in the individual branch equivalent tax account of the company,—

Shall, with any necessary modifications, apply in respect of any tax paid by a consolidated group as if it were a single company; and

Shall not apply to limit a refund of income tax payable to a company that is a member of a consolidated group in respect of income tax paid individually by that company to the extent that, if such a refund had been of income tax paid by the consolidated group, section 394zzx would not have limited the refund.

Nil, for the imputation year during which the consolidated group is formed; and

The amount of the closing balance of the policyholder credit account for the preceding imputation year (being a credit or debit, as the case may be), in any other case.

Any amount forming all or part of a credit balance in the group’s imputation credit account that the nominated company for the group elects in accordance with section 191sd(1)(a) of this Act to be a credit to the group’s policyholder credit account:

Any amount forming all or part of a credit balance in the group’s dividend withholding payment account that the nominated company for the group elects in accordance with section 191sd(2) of this Act to be a credit to the group’s policyholder credit account:

The amount of any credit arising during the imputation year to the policyholder credit account under section 191wb(1) of this Act.

In the case of a credit referred to in paragraph (a) of that subsection, on the date that the amount of the credit arises as a debit to the group’s imputation credit account pursuant to section 191sb(2)(b) of this Act:

In the case of a credit referred to in paragraph (b) of that subsection, on the date that the amount of the credit arises as a debit to the group’s dividend withholding payment account pursuant to section 191ub(2)(b) of this Act:

In the case of a credit referred to in paragraph (c) of that subsection, at the time first referred to section 191wb(1) of this Act.

The amount of any credit balance in the account that the nominated company for the group elects in accordance with section 191wc(2) of this Act to use as a credit against income tax payable by the group in respect of policyholder income under sections 205 to 205f of this Act:

The amount of any credit balance in the account that the nominated company for the group elects in accordance with section 191wc(3) of this Act to be a credit to the group’s imputation credit account.

In the case of a debit referred to in paragraph (a) of that subsection, on the last day of the income year of the group to which the income tax that is reduced by the relevant amount of the credit balance relates:

In the case of a debit referred to in paragraph (b) of that subsection, on the date the company elects in accordance with section 191wc(3) of this Act to credit the group’s imputation credit account.

A company which is at that time a member of a consolidated group has a credit in its individual policyholder credit account (such credit being referred to in this section as the company credit); and

A debit arises under this section to be recorded in the policyholder credit account of the consolidated group; and

That debit is not offset, determined by applying the procedure set out in section 394e(4)(c) of this Act as if that policyholder credit account were an imputation credit account, against any credit in the consolidated group’s policyholder credit account which arose before the date or on the same date upon which the company credit arose—

In the order in which those credits arose, determined having regard to the procedure set out in section 394e(4)(c) of this Act as if that policyholder credit account were an imputation credit account; and

If 2 or more credits arose at the same time,—

Each reference to the policyholder credit account company were a reference to the group; and

Each reference to a provision of this Act applicable to an individual company were a reference to the equivalent provision of this Act applicable to consolidated groups.”

Every reference to a petroleum mining asset shall also include a share or partial interest in such asset:

Every reference to a petroleum permit shall also apply to a replacement permit, and all expenditure incurred, deductions claimed, and petroleum mining assets that are attributable to that petroleum permit shall be attributable to the replacement permit:

A partner in a partnership shall be deemed to have a share or interest in every petroleum permit of the partnership and in all other property of the partnership in accordance with the partner’s income interest in the partnership:

All references to the disposition of an asset shall apply to the disposal of part of an asset.

Any 2 companies which consist substantially of the same shareholders or are under the control of the same persons; or

Any company and any person (other than a company) who holds, directly or indirectly, 50 percent or more of the paid-up capital or 50 percent or more in nominal value of the allotted shares of that company; or

Any 2 persons who are relatives; or

A partnership and any person where that person is a partner in the partnership; or

A partnership and any person, where that person and any partner in that partnership are associated persons; or

A trustee of a trust and a trustee of another trust, if the same person is a settlor of both trusts; or

A trustee of a trust and a beneficiary of that trust; or

A person and an organisation which is described in section 61(23) or section 61(25) or section 61(34) of this Act and which is controlled, directly or indirectly, by such person or by a relative of such person.

Shares in a company or interests in a partnership held directly or indirectly by or for a company, partnership, or trust shall be deemed to be held proportionately by or for the shareholders, partners, or beneficiaries in the company, trust, or partnership; and

A person who is an individual shall be deemed to hold the shares in a company or the interest in a partnership which are held, or deemed to be held, by or for the person’s relatives; and

Shares in a company or interests in a partnership deemed to be held by a person by reason of the application of paragraph (a) of this subsection shall, for the purposes of applying paragraph (a) or paragraph (b) of this subsection, be treated as being held directly by that person, but shares or interests deemed to be held by a person by reason of the application of paragraph (b) of this subsection shall not be treated as being held by that person for the purpose of again applying paragraph (b) of this subsection in order to make another person the deemed holder of those shares or interests.

Exploration expenditure; or

Development expenditure.

Exploration expenditure shall be deductible in the income year in which it is incurred:

Development expenditure incurred in any income year shall be treated as deferred deductions and, to the extent such expenditure has not been deducted under any other subsection of this section or under sections 214g to 214j of this Act, shall be deductible by the petroleum miner in equal amounts over the 7 income years beginning—

Was incurred by a petroleum miner on or after the 1st day of October 1990 and before the 16th day of December 1991; and

Was or was deemed to be petroleum mining development expenditure within the meaning of sections 214d to 214m of this Act as in force before their repeal by section 15 of the Income Tax Amendment Act (No. 5) 1992,—

The first year of commercial production; or

The income year in which the expenditure was incurred.

Deferred deductions in respect of expenditure incurred for the purpose of acquiring a permit specific asset shall be attributable to that asset and to the petroleum permit area to which the asset relates:

Deferred deductions in respect of expenditure incurred for the purpose of acquiring a petroleum permit shall be attributable to the permit area to which the permit relates.

Relinquishes a petroleum permit, any deferred deductions attributable to that permit or to any permit specific asset held solely in respect of that permit that have not been deducted previously shall be deductible in the year of relinquishment:

Disposes of a petroleum mining asset for consideration, any deferred deductions that—

shall be deductible in the year that that consideration is, under section 214h(1) of this Act, assessable income derived by the petroleum miner:

“Provided that where such consideration is derived in more than one income year, any deduction allowed in respect of the disposition shall be allocated between the income years in which the income is derived, and the deduction allowed in each year shall bear the same relation to total deductions allowed in respect of the disposition that the assessable income derived in that income year bears to the total assessable income derived in respect of the disposition:

Seals and abandons an exploratory well prior to the date of first commercial production, any expenditure incurred before the 16th day of December 1991 in drilling, testing, completing, and abandoning that well that has not been deducted previously shall be deductible in the year the well is sealed and abandoned.

The petroleum miner shall be entitled to deductions under subsection (5)(b) of this section in respect of that asset only to the extent that the deductions do not exceed the assessable income derived by the petroleum miner from that disposition; and

To the extent that deferred deductions in respect of that petroleum mining asset are not deductible under paragraph (a) of this subsection, the petroleum miner shall reduce any deferred deductions in respect of that petroleum mining asset by the amount which is not deductible under that paragraph.

The person who acquired the asset from the petroleum miner subsequently disposes of the asset to a person not associated with the petroleum miner, then, unless paragraph (b) of this subsection earlier applies, the person so subsequently disposing of the asset shall be entitled to a deduction in respect of the subsequent disposition equal to the amount that was not deductible to the petroleum miner by virtue of subsection (6)(a) of this section:

The petroleum miner and the person who acquired the asset cease to be associated persons, then, unless paragraph (a) of this section earlier applies, the petroleum miner shall be entitled to a deduction, in the income year in which the miner and the person ceased to be associated persons, equal to the amount that was deductible to the petroleum miner under subsection (6)(a) of this section:

“Provided that where it appears to the Commissioner that the petroleum miner and the person ceased to be associated persons for the purpose, or for purposes including the purpose (not being a merely incidental purpose) of obtaining a deduction under this subsection, the petroleum miner and the person shall for the purposes of this paragraph continue to be treated as associated persons, and the Commissioner may adjust any return accordingly.

Petroleum is being produced in commercial quantities on a continuing basis under the permit; or

An application for a mining permit for the permit area has been made by a person having the right to make such an application under section 32(3) of the Crown Minerals Act 1991,—

The petroleum miner shall be deemed to have derived, in the first year of commercial production from the well, assessable income equal to—

For the purposes of this section, the amount of expenditure referred to in subparagraphs (i) and (ii) of paragraph (a) of this section shall be treated as an amount of development expenditure incurred by the petroleum miner in the first year of commercial production from the well, and shall be deductible to the petroleum miner under the provisions of this section accordingly.

Expenditure for removal or restoration operations is incurred; or

A permit is relinquished and deferred deductions are deductible under section 214f(5)(a) of this Act,—

Where the asset is a prospecting licence, a prospecting permit, or an exploration permit and the consideration is paid on or after the 16th day of December 1991, be deemed to be exploration expenditure; and

Where the consideration was paid before the 16th day of December 1991, be deemed to be petroleum mining development expenditure to which section 214f(3) of this Act applies; and

In any other case, be deemed to be development expenditure,—

Shall be treated as development expenditure, exploratory well expenditure, or prospecting expenditure, as the case may be, incurred in the income year or years such expenditure is incurred by the farm-in party; and

Shall be deductible to the farm-in party in accordance with the provisions of section 214f of this Act.

Any excess expenditure (as defined in the said section 214d as previously in force) in relation to that farm-out arrangement, whether incurred before, on, or after the 16th day of December 1991, shall not constitute assessable income to the transferor (as so previously defined); and

Any such excess expenditure shall—

The transferor (as so previously defined) under that farmout arrangement shall reduce in accordance with subsection (4) of this section (but shall not deduct) any deductions attributable to—

whether or not those deductions relate to expenditure incurred before, on, or after the 16th day of December 1991, and whether or not such expenditure is exploration expenditure or development expenditure (but not being deductions of a kind referred to in paragraphs (a) to (c) of subsection (4) of this section).

Deductions in respect of residual expenditure; and

Deductions in respect of expenditure incurred on or before the date the application for a prospecting licence or prospecting permit was submitted with respect to the relevant licence area; and

Deductions in respect of any expenditure that is neither exploration expenditure nor development expenditure.

The date of the disposition; and

The number of shares, or the proportion of the trust represented by the trust interest, comprised in the disposition; and

The name and address of the person disposing of and the person acquiring the shares or trust interest.

In any case where the holder of a petroleum permit disposes of the permit, the proportion of the permit disposed of; or

In any case where a petroleum permit is disposed of together with petroleum mining assets, the consideration and the deferred deductions to be attributed to—

Whether, and if so when, a permit has been relinquished; or

The year or date of first commercial production for a permit area in which a petroleum miner holds an interest; or

Whether any expenditure incurred before the 16th day of December 1991 on an exploratory well or an appraisal well contributed to defining the scope, character, or size of any deposit of petroleum; or

In the case where petroleum mining operations are carried on outside New Zealand, the foreign equivalent of—

any such question shall be determined, for the purposes of ascertaining the assessable income of the petroleum miner for any year,—

By agreement between the petroleum miner or petroleum miners affected and the Commissioner; or

In the absence of such agreement, by the Commissioner after consulting, if the Commissioner considers it necessary, with the Energy and Resources Division of the Ministry of Commerce, or any other organisation or person having relevant expertise or information.

The determination shall be subject to such terms and conditions as are agreed or as the Commissioner may specify; and

The Commissioner shall give written notice of the determination and any such terms and conditions to the petroleum miner in respect of whom the determination is made within a reasonable period of time.

An objection under subsection (4) of this section has been lodged by the taxpayer and has been determined; and

The objection to the assessment or determination under section 19 of this Act is on the same or substantially similar grounds as those of the objection so lodged and determined.

Obtaining a permit; or

Whether or when a permit has been relinquished; or

Any other relevant document or matter relating to the licensing and conduct of petroleum mining operations,—

A disposal of any petroleum mining asset on or after the 1st day of July 1992, together with any related arrangements (if any); or

The incurring of exploration expenditure on or after the 1st day of July 1992, together with any related arrangements (if any); or

A farm-out arrangement entered into on or after the 16th day of December 1991, together with any related arrangements (if any),—

An arrangement involving the disposal, on or after the 1st day of July 1992, of any petroleum mining asset where it is probable at the time the arrangement is entered into that the person acquiring the petroleum mining asset—

An arrangement involving the incurring, on or after the 1st day of July 1992, of exploration expenditure where it is probable at the time the arrangement is entered into that the person who is to incur the exploration expenditure—

An arrangement, involving a farm-out arrangement entered into on or after the 16th day of December 1991, where it is probable at the time the arrangement is entered into that—

An arrangement whereby a petroleum miner disposes of a petroleum mining asset to an associated person on or after the 1st day of July 1992 for the purpose, or for purposes including the purpose, of ensuring that the associated person secures the benefit of a greater deduction than that which would have been available if the asset had been disposed of for its market value:

An arrangement whereby a petroleum miner enters into a farm-out arrangement with an associated person on or after the 16th day of December 1991 for the purpose, or for purposes including the purpose, of ensuring that the associated person receives the benefit of a greater deduction than would have been available if the farm-out arrangement had been entered into on substantially the same terms as those on which it would have been entered into with a person not associated with the petroleum miner.

Expenditure incurred or deemed to be incurred on or after the 1st day of October 1990; and

Assessable income derived from the disposal of shares or trust interests in controlled petroleum mining entities on or after the 1st day of October 1990, but only to the extent of the difference between the consideration derived from such disposal and the market value of each such share or interest on the 1st day of October 1990; and

Assessable income derived from the disposal of petroleum mining assets on or after the 1st day of October 1990, but, where such assets were disposed of between the 1st day of October 1990 and before the 1st day of July 1992, only to the extent of the difference between the consideration derived from such disposal and the market value of each such asset on the 1st day of October 1990.