MINERALS RESOURCE RENT TAX ACT 2012 [ REPEALED]

CHAPTER 2 - GENERAL LIABILITY RULES  

PART 2-3 - MINING PROFITS  

Division 35 - Mining expenditure  

Subdivision 35-B - Excluded expenditure  

SECTION 35-55   HIRE PURCHASE AGREEMENTS  

35-55(1)  
An amount of expenditure is excluded expenditure to the extent that it relates to a * hire purchase agreement .

35-55(2)  
However, if an amount of expenditure is excluded expenditure for a miner under subsection (1) in relation to a * hire purchase agreement :


(a) the miner is taken to have incurred the amount mentioned in subsection (3) at the earliest time at which the property is * supplied to the miner under the agreement; and


(b) the miner is taken to have acquired the property for that amount at the time the amount is incurred; and


(c) the amount is not excluded expenditure under subsection (1) or section 35-50 .

35-55(3)  
For the purposes of paragraph (2)(a), the amount is:


(a) if an amount is stated to be the cost or value of the property for the purposes of the agreement, and the miner and the hirer were dealing with each other at * arm ' s length in connection with the agreement - the amount so stated; or


(b) otherwise - the amount that could reasonably have been expected to have been paid by the miner for the purchase of the property if:


(i) the hirer had actually sold the property to the miner at the start of the agreement; and

(ii) the hirer and the miner were dealing with each other at arm ' s length in connection with the sale.
Note:

The amount may be mining expenditure under this Division.




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