Oil Taxation Act 1983 Schedule 4 para 4

Consideration falling within subsection (1) of the principal section

Schedule 4 paragraph 4 defines when consideration received by a participator in a foreign field counts as an accountable receipt, and how disposal receipts are tested against tariff receipt assumptions.

• A participator in a foreign field is only accountable for consideration if, under the relevant assumptions, it would qualify as a tariff receipt or disposal receipt attributable to that foreign field.
• The test requires an additional assumption: that the field asset giving rise to the consideration is treated as a qualifying asset.
• When determining whether consideration counts as a disposal receipt, the normal tariff receipt reference in section 7(4)(b) is replaced with a reference to consideration that would, under the same assumptions, constitute a tariff receipt.
• Both conditions — the relevant assumptions and the qualifying asset assumption — must be satisfied together for the consideration to be accountable.

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