INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 16H - Termination of gold mining exemptions  

Subdivision B - Division 10 and related provisions  

SECTION 159GZZJ   159GZZJ   INTERPRETATION  
In this Subdivision:

"actual deduction"
, in relation to the changeover year or a subsequent year of income of a taxpayer, in relation to an amount of eligible gold mining expenditure of the taxpayer, means the deduction actually allowed or allowable for the year in relation to the expenditure under Division 10 (other than section 122K ) in its application in accordance with this Subdivision;

"changeover year"
, in relation to a taxpayer, means the year of income of the taxpayer in which 1 January 1991 occurs;

"deduction limiting provision"
means subsection 122D(3) , 122DB(3) , 122DD(3) , 122DF(3) or 122DG(6) ;

"deemed gold exploration or prospecting expenditure"
means expenditure that is taken by section 159GZZQ to be incurred on 1 January 1991;

"eligible gold exploration or prospecting expenditure"
, in relation to a taxpayer, means expenditure that:


(a) is or was incurred by the taxpayer after 25 May 1988 and before 1 January 1991; and


(b) is not expenditure of a kind referred to in subsection 122J(1) but would, if paragraph 23(o) or section 159GZZV had not been enacted, be expenditure of a kind referred to in that subsection;

"eligible gold mining expenditure"
, in relation to a taxpayer, means:


(a) expenditure that:


(i) is or was incurred by the taxpayer before 1 January 1991; and

(ii) is not allowable capital expenditure of the taxpayer for the purposes of Division 10 but would, for the purposes of that Division, be allowable capital expenditure (other than by virtue of paragraph 122A(1)(d) ) of the taxpayer if paragraph 23(o) or section 159GZZV had not been enacted; or


(b) expenditure that the taxpayer is taken to have incurred under subparagraph 159GZZU(3)(e)(i) ;

"notional deduction"
, in relation to the changeover year or a prior year of income of a taxpayer, in relation to an amount of eligible gold mining expenditure of the taxpayer, means:


(a) in the case of a year of income before the changeover year - the deduction that would be allowable to the taxpayer in respect of the expenditure for the year of income if the notional writing-down assumptions were made; and


(b) in the case of the changeover year - a proportion of the deduction that, apart from section 159GZZL and before the application of any deduction limiting provision, would be allowable to the taxpayer in respect of the expenditure for the changeover year, being a proportion ascertained in accordance with the formula:


        Pre-1 January part        
Post-expenditure part


where:
  • Pre-1 January part means:
  • (i) if the expenditure is incurred before the changeover year - the number of days in the part of the changeover year ending at the end of 31 December 1990; or
  • (ii) if the expenditure is incurred in the changeover year - the number of days in the period from the beginning of the day on which the expenditure is incurred until the end of 31 December 1990; and
  • Post-expenditure part means:
  • (iii) if the expenditure is incurred before the changeover year - the number of days in the changeover year; or
  • (iv) if the expenditure is incurred in the changeover year - the number of days in the period from the beginning of the day on which the expenditure is incurred until the end of the changeover year;
  • "notional writing-down assumptions"
    means the following assumptions:


    (a) that paragraph 23(o) and sections 122JA and 159GZZV were never enacted;


    (b) that, for years of income before the changeover year, the deduction limiting provisions and sections 79E and 80 were not applicable in relation to deductions for eligible gold mining expenditure;


    (c) that, for the purposes of applying section 122B in relation to the acquisition, during or before the changeover year of the vendor referred to in that section, of a mining or prospecting right or mining or prospecting information, eligible gold mining expenditure were not expenditure referred to in paragraph (2)(a) of that section;


    (d) that sections 122E , 122F , 122G , 122H and 122Q were not applicable to eligible gold mining expenditure; and


    (e) that section 122K were not applicable to property disposed of, lost or destroyed, or whose use for purposes referred to in that section is or was otherwise terminated, during or before the changeover year, to the extent that eligible gold mining expenditure is or was incurred on the property.


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