INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10 - Mining and quarrying  

Subdivision B - Quarrying  

SECTION 122JD   PURCHASE OF QUARRYING OR PROSPECTING RIGHT OR INFORMATION  

122JD(1)   [Notice to include amount in allowable capital expenditure]  

Where a person (in this section called the purchaser ) has incurred expenditure in acquiring from another person (in this section called the vendor ), for the purpose of carrying on:

(a) eligible quarrying operations; or

(b) exploration or prospecting for quarry materials obtainable by eligible quarrying operations;

a quarrying or prospecting right or quarrying or prospecting information, the purchaser and the vendor may give notice to the Commissioner that they have agreed to the inclusion in the allowable capital expenditure of the purchaser of an amount specified in the notice, being the whole or a part of that expenditure.

122JD(2)   [Amount specified in notice]  

If the amount specified in a notice given under this section in respect of a transaction exceeds the sum of:

(a) so much of the capital expenditure (other than expenditure on plant or expenditure of a kind referred to in section 122JF ) incurred by the vendor after 15 August 1989 and before the date of the transaction in relation to the area that is the subject of the right or to which the information relates as:

(i) has not been allowed and is not allowable as a deduction to the vendor under subsection 122JE(1) in respect of a year of income of the vendor preceding the year of income during which the transaction occurred; and

(ii) is attributable to an amount of expenditure incurred in relation to that area that has not been taken into account in determining an amount to be included in the allowable capital expenditure of a person under paragraph 122JC(1)(c) in respect of a transaction entered into before the first-mentioned transaction; and

(b) any expenditure of the vendor (other than expenditure on plant in use by the vendor at the date of the transaction) of a kind referred to in section 122JF incurred by the vendor after 15 August 1989 and before the date of the transaction that has not been allowed and is not allowable as a deduction to the vendor in the year of income in which the transaction takes place or in any prior year of income; and

(c) the amount included in the vendor's assessable income under section 122K in relation to property acquired by the purchaser from the vendor in connection with the transaction;

the amount specified in the notice is to be taken, for all purposes of this Subdivision, to be the amount in fact so specified less the amount of the excess.

122JD(3)   [Expenditure on buildings and improvements]  

For the purposes of paragraph (2)(a), the capital expenditure incurred by the vendor in relation to an area the subject of a quarrying or prospecting right is to be taken not to include capital expenditure on buildings or other improvements unless rights in respect of them are acquired by the purchaser with the quarrying or prospecting right.

122JD(4)   [Notice re grant, assignment, surrender of lease]  

A notice under this section is not to be taken to have been given where the notice relates to a lease in relation to the grant, assignment or surrender of which the persons giving the notice have (whether before or after the lodging of the notice with the Commissioner) made an election under subsection 88B(5) that has effect in relation to the grant, assignment or surrender.

122JD(5)   [Form and lodgment of notice]  

A notice under this section:

(a) must be in writing signed by or on behalf of the persons giving the notice; and

(b) must be lodged with the Commissioner not later than 2 months after the end of the year of income of the purchaser in which the right or information was acquired, or within such further time as the Commissioner allows.