MINERALS RESOURCE RENT TAX ACT 2012 [ REPEALED]

CHAPTER 3 - MRRT ALLOWANCES  

PART 3-5 - STARTING BASE ALLOWANCES  

Division 90 - Declines in value of starting base assets  

Subdivision 90-D - Miscellaneous  

SECTION 90-65   RECOUPMENT OF THE VALUE OF A STARTING BASE ASSET   Reducing the base value

90-65(1)  
The base value of the * starting base asset for an * MRRT year is reduced to the extent (if any) that:


(a) an amount is received, or becomes receivable, by the miner that has the mining project interest to which the asset relates:


(i) if the year is the MRRT year in which the * start time for the asset happens - during the period starting on the day provided under subsection (2) and ending just before the end of that year; or

(ii) in any other case - during the year; and


(b) payment of the amount has, or would have, the purpose or effect of * recouping or offsetting some or all of what would (apart from this subsection) be the asset ' s base value; and


(c) the amount does not relate to a * starting base adjustment event for the asset; and


(d) the amount is not taken into account through a reduction under section 90-60 .

90-65(2)  
The period starts:


(a) if, under Division 85 , the book value approach is the valuation approach for the mining project interest - on the date of the financial report mentioned in paragraph 90-25(3)(a) in relation to the accounts in which the value of the asset is recorded; or


(b) if, under Division 85 , the market value approach is the valuation approach for the mining project interest - on 2 May 2010.

90-65(3)  
However, subsection (1) does not apply to the extent that:


(a) the * starting base asset is or includes the rights and interests that constitute a mining project interest; and


(b) the amount mentioned in paragraph (1)(a) relates to disposal of any of those rights and interests. Including amounts in mining revenue

90-65(4)  
If what would otherwise be the amount of the reduction under subsection (1) exceeds what would (apart from that subsection) be the * base value of the * starting base asset , the amount of the excess is included in the miner ' s * mining revenue for the * MRRT year .

90-65(5)  
However, if one or more of the following applies:


(a) there have been reductions to a * starting base loss relating to the * starting base asset, for that * MRRT year or an earlier MRRT year, under subsection 80-40(3) or (4) ;


(b) there have been reductions to a starting base loss relating to the asset, for that MRRT year or an earlier MRRT year, under paragraph 115-15(2)(b) ;


(c) there has been no starting base loss for that MRRT year, or no starting base loss for an earlier MRRT year, for the mining project interest to which the asset relates, because of paragraph 115-15(2)(a) , 130-15(a) or (b) or 200-5(b) or (c) ;

the amount included in the miner ' s * mining revenue under subsection (4) is reduced by the following:


Excess amount × Sum of reductions
Total decline

where:

excess amount
is the amount of the excess mentioned in subsection (4).

sum of reductions
is the sum of:


(a) any reductions to a * starting base loss relating to the * starting base asset, for that * MRRT year or an earlier MRRT year, under subsection 80-40(3) or (4) ; and


(b) any reductions to a starting base loss relating to the asset, for that MRRT year or an earlier MRRT year, under paragraph 115-15(2)(b) ; and


(c) any starting base losses, for that MRRT year or an earlier MRRT year, that paragraph 115-15(2)(a) , 130-15(a) or (b) or 200-5(b) extinguished, or paragraph 200-5(c) prevented from arising, to the extent that they related (or would have related) to the asset.

total decline
is the sum of the declines in value of the asset that have happened during that * MRRT year or any earlier MRRT year.

Note 1:

Reductions happen under subsection 80-40(3) or (4) if the asset is used, installed for use, or constructed for use:

  • (a) for a purpose other than carrying on upstream mining operations relating to the mining project interest; or
  • (b) in connection with excluded expenditure.
  • Note 2:

    Starting base losses are reduced under paragraph 115-15(2)(b) if a miner chooses to treat a mining project interest as having combined with another despite non-compliance with section 115-35 .

    Note 3:

    Starting base losses are extinguished, or prevented from arising, if:

  • (a) under paragraph 115-15(2)(a) , a miner chooses to treat a mining project interest as having combined with another despite non-compliance with section 115-35 ; or
  • (b) under paragraph 130-15(a) or (b) , the suspension day for the mining project interest happens; or
  • (c) under paragraph 200-5(b) or (c) , a miner chooses to use the simplified MRRT method.



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