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 159GZZU   ELIGIBLE GOLD MINING AND ELIGIBLE GOLD EXPLORATION OR PROSPECTING EXPENDITURE - EFFECT OF CERTAIN TRANSFERS OF MINING RIGHTS ETC.  

159GZZU(1)   [Where section applies]  

This section applies to an acquisition by a taxpayer (in this section called the ``purchaser'' ) from another taxpayer (in this section called the ``vendor'' ) of a mining or prospecting right, where the acquisition is for the purpose of carrying on, or of exploration or prospecting for minerals obtainable by, prescribed mining operations or what would, if paragraph 23(o) and section 159GZZV had not been enacted, be prescribed mining operations.

159GZZU(2)   [Expenditure deemed incurred]  

Where:


(a) this section applies to the acquisition of a mining or prospecting right;


(b) the acquisition occurs or occurred during or before the changeover year of the vendor; and


(c) before the acquisition, the vendor incurred (including by virtue of a previous application of this section in relation to another acquisition) eligible gold mining expenditure, to the extent that it was not on plant, in relation to the area that is the subject of the right;

then, for the purposes of the application of Division 10 in accordance with this Subdivision, the purchaser, instead of the vendor, shall be taken to have incurred the expenditure.

159GZZU(3)   [Notice]  

Where:


(a) this section applies to the acquisition of a mining or prospecting right;


(b) the acquisition occurs or occurred before 1 January 1991; and


(c) before the acquisition, the vendor incurred eligible gold exploration or prospecting expenditure, to the extent that it was not on plant in use by the vendor at the date of the acquisition;

the following provisions have effect:


(d) the vendor and the purchaser may, in accordance with subsection (4), give notice to the Commissioner that they have agreed to the application of this subsection in relation to an amount specified in the notice, being the whole or part of the eligible gold exploration or prospecting expenditure;


(e) where such notice is given:


(i) the amount specified in the notice shall, for the purposes of the application of Division 10 in accordance with this Subdivision, be taken to be expenditure incurred by the purchaser in acquiring the mining or prospecting right concerned from the vendor and be taken to have been specified in a notice under section 122B duly given to the Commissioner by the vendor and the purchaser; and

(ii) the amount specified in the notice shall not be taken into account as eligible gold exploration or prospecting expenditure of the vendor for the purposes of section 159GZZQ or of applying this subsection to any later acquisition of a mining or prospecting right from the vendor.

159GZZU(4)   [Time and form of notice]  

A notice under subsection (3) shall:


(a) be in writing signed by or on behalf of the vendor and the purchaser; and


(b) be lodged with the Commissioner not later than:


(i) if the acquisition occurred before the commencement of this section - 12 months after the commencement of this section; or

(ii) in any other case - 2 months after the end of the year of income of the purchaser in which the acquisition occurs;
or within such further time as the Commissioner allows.


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