What does paragraph 4 of Schedule 1 of the Oil Taxation Act 1975 require?

Paragraph 4 requires the appropriate authority to give formal notice of any determination it has made under Schedule 1. The notice must be sent to every person who was previously notified of the proposed determination, ensuring all consulted parties are informed of the final decision regarding oil field boundaries and designation.

Who must receive notice of a determination under paragraph 4 of Schedule 1?

Every person who received notice of the proposed determination at the earlier consultation stage must receive notice of the final determination. This typically includes participators in the oil field — the companies or individuals holding interests in the field who are liable to petroleum revenue tax in respect of it.

Why is the notification requirement in paragraph 4 important for petroleum revenue tax?

The notification requirement is a procedural safeguard ensuring transparency. It gives affected parties the information they need to understand how the oil field has been determined, which directly affects how their petroleum revenue tax liabilities are calculated. It ensures no consulted party is left uninformed of the final outcome.

How does the determination notification process work in practice under Schedule 1?

The appropriate authority first notifies relevant persons, typically participators, of a proposed determination regarding an oil field. After considering representations and completing its review, the authority makes its final determination and must then send notice of that decision to all parties who received the original proposed determination notice.

Oil Taxation Act 1975 Schedule 1 paragraph 4

Areas that are oil fields

Paragraph 4 of Schedule 1 requires the appropriate authority to notify all relevant parties when it has made a determination about an oil field.

When the appropriate authority makes a determination under Schedule 1, it must issue a formal notice of that determination.
The notice must be sent to every person who was previously notified of the proposed determination.
This ensures that all parties who were consulted or informed during the proposal stage are kept informed of the final outcome.
The requirement applies to any determination made under the Schedule, covering decisions about the boundaries and designation of oil fields for petroleum revenue tax purposes.

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.

Become a member