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.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.