INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 418 - Exploration for minerals  

Subdivision 418-DA - Exploration credits allocation  

SECTION 418-101   Determination by the Commissioner  

Determination allocating exploration credits

418-101(1)  
The Commissioner may make a written determination allocating *exploration credits of an amount specified in the determination to an entity for an income year. Circumstances in which the Commissioner must not make a determination

418-101(2)  
The Commissioner must not make a determination allocating *exploration credits to an entity for an income year if the Commissioner is not satisfied that:


(a) there is a reasonable possibility that the entity will have:


(i) *greenfields minerals expenditure of the amount estimated by the entity in the application, or greater; and

(ii) a *tax loss of the amount estimated by the entity in the application, or greater; and

(iii) the *corporate tax rate estimated by the entity in the application; and


(b) the entity meets any other requirement prescribed under the regulations. Amount of the exploration credits allocated

418-101(3)  
The amount of the *exploration credits specified in the determination must be the smallest of the following amounts:


(a) the entity ' s estimated *greenfields minerals expenditure for the income year multiplied by the entity ' s estimated *corporate tax rate for the income year;


(b) the entity ' s estimated *tax loss for the income year multiplied by the entity ' s estimated corporate tax rate for the income year;


(c) either:


(i) 5% of an amount equal to the *annual exploration cap for the income year; or

(ii) if another amount, or a method for working out another amount, is prescribed - the other amount.
Determination not a legislative instrument

418-101(4)  
A determination made under subsection (1) is not a legislative instrument.


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