Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 130 - Investments  

Subdivision 130-F - Exploration investments  

SECTION 130-110   Reducing the reduced cost base before disposal  

130-110(1)    
This section applies if:

(a)    

an entity (the minerals explorer ) issues a *share in the minerals explorer to another entity (the investor ) during the 2017-18, 2018-19, 2019-20, 2020-21, 2021-22, 2022-23, 2023-24 or 2024-25 income year; and

(b)    the Commissioner makes a determination under section 418-101 allocating exploration credits to the minerals explorer for the income year in which the share is issued; and

(c)    the share is issued to the investor on or after the day on which the Commissioner ' s determination is made; and

(d)    the share is an *equity interest.

130-110(2)    
The *reduced cost base of the *share is to be reduced immediately before the disposal of the share by the amount worked out as follows:

The *corporate tax rate for the minerals explorer for the income year in which the *share is issued

×

The amount paid up by the investor on the share during the investment period

where:

investment period
means the period, within the income year in which the *share is issued to the investor, that:

(a) begins on the day on which the Commissioner makes the determination mentioned in paragraph (1)(b); and

(b) ends at the end of the income year.