Section 11
Collector may disregard, vary or adjust arrangements
of I Ncome Tax (Petroleum) Act
(1)
Where the Collector is satisfied that the purpose or effect of any arrangement is directly or indirectly —
(a)
to alter the incidence of any tax which is payable by, or which would otherwise have been payable by, any person;
(b)
to relieve any person from any liability to pay tax or to make a return under this Act; or
Income Tax (Petroleum)
B.L.R.O. 6/2022 27
(c)
to reduce or avoid any liability imposed or which would otherwise have been imposed on any person by this Act, he may, without prejudice to such validity as it may have in any other respect or for any other purpose, disregard or vary the arrangement and make such adjustment as he considers appropriate, including the computation or re-computation of gains or profits, and the imposition of liability to tax, so as to nullify any tax advantage obtained or obtainable from or under that arrangement.
(2)
In subsection (1), “arrangement” includes any scheme, trust, grant, covenant, agreement, disposition and transaction, and all steps by which it is carried into effect.
(3)
Nothing contained in this section shall prevent the decision of the Collector in the exercise of any discretion given to him by this section from being questioned in an objection or an appeal against an assessment in accordance with Parts 7 and 8.
Further charge to tax; deduction of tax at source; indemnification of company deducting tax 12.
(1)
For each year of assessment there shall be levied and paid a tax at the rate of 55 per cent on any payments due by way of annuity, royalty or other such recurring payment relating to a former interest in and/or rights to petroleum in Brunei Darussalam which is received under any agreement entered into after the coming into force of this Act between a company engaged in petroleum operations and a person who has sold his interest in and/or rights to petroleum in Brunei Darussalam providing for such payments to be made to the latter.
(2)
The paying company shall deduct the tax from any such payment due under the agreement and shall pay the tax so deducted to the
Collector forthwith.
(3)
Every company deducting tax in accordance with the preceding subsection shall be and is hereby indemnified against any person whatsoever for all tax deducted and paid in pursuance of this section.
Income Tax (Petroleum)