General OTA75\S2(5)

There is no specific mention of the point at which a sale (in the case of situations covered by OTA75\S2(5)(a) and (b)) or appropriation (in situations covered by S2(5)(c)) becomes taxable.

But the meaning of subsections 5 (a) and (b) is plain; For sales to be taxable oil has to be ‘won from the field’, ‘disposed of’ and ‘delivered in the period’, so the ‘tax point’ for sales is the time at which oil is delivered to the buyer (see OT05050 for the effect of this on Term\Entitlement contracts).

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