Section 8
Ascertainment of chargeable profits
of I Ncome Tax (Petroleum) Act
(1)
The gross proceeds for any basis period of any company engaged in petroleum operations shall be the aggregate of —
(a)
the actual proceeds of sale of all petroleum sold by the company in that period, or the price referred to in subsection (2), whichever is the higher; and
(b)
in the case of petroleum disposed of by the company or petroleum taken by the Government by way of royalty in kind in that period, the price referred to in subsection (2); and
(c)
all income of the company of that period incidental to and arising from any one or more of its petroleum operations.
(2)
For the purposes of subsection (1), the price of any petroleum sold, disposed of or taken by the Government by way of royalty in kind shall be the price it would have been expected to realise if sold for export at the time of sale or disposal and if the buyer and the seller had been persons not under common control dealing at arm’s length:
Provided that where an agreement as to the price of any petroleum sold for consumption within Brunei Darussalam has been made between the company and the Government, the price so agreed shall be taken to be the price thereof for the purposes of this section.
Income Tax (Petroleum)
(3)
The chargeable profits for any basis period of any company engaged in petroleum operations shall be the remainder of the gross proceeds of that company during that period, after the deductions allowed by this Part shall have been made:
Provided that where a company engaged in petroleum operations is also engaged in the transportation of petroleum outside Brunei Darussalam by pipeline and/or tankers operated by or on behalf of the company, then such adjustments shall be made in computing the chargeable profits of that company as shall have the effect of excluding therefrom any profit or loss attributable to such transportation.