MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 4 - SPECIALIST LIABILITY RULES  

PART 4-5 - ACCOUNTING FOR MRRT  

Division 185 - Currency translation  

Operative provisions  

SECTION 185-25   SPECIAL TRANSLATION RULES  

185-25(1)    
If:

(a) because of this Division, an amount is to be translated at the exchange rate that would be applicable if the translation were being done for the purposes of Subdivision 960-C or 960-D of the Income Tax Assessment Act 1997 ; and

(b) an item in the table applies to the circumstances of the translation;

the amount is to be translated at the exchange rate so applicable on the day (the exchange rate day ) mentioned in that item in the table.

Exchange rate days
Item	In these circumstances …	the exchange rate day is
1	the amount is an amount of * instalment income for an * instalment quarter in an * MRRT year	the last day of the instalment quarter
2	the amount is an amount of:	the last day of the MRRT year
	(a)	* mining profit for a mining project interest the * entity has in the * MRRT year ; or
	(b)	* pre-mining profit for a * pre-mining project interest the entity * holds in the MRRT year
3	the amount is an applied * allowance component that is to be translated because of paragraph 185-15(7)(c) (the second translation for functional currency)	the last day of the * MRRT year to which the allowance component relates
4	an * entity is required to translate the amount in an * MRRT year (the current year ) because:	the first day of the current year
	(a)	in the preceding MRRT year, the amount was taken into account under the * MRRT law in a particular currency; and
	(b)	in the current year the amount is to be taken into account in a different currency
5	an * entity is required to translate the amount in an * MRRT year because:	the day on which the mining project transfer or mining project split happens
	(a)	the amount relates to a mining project interest the entity has after a * mining project transfer or * mining project split ; and
	(b)	the entity takes the amount into account in a different currency to the currency in which the entity that had the interest before the transfer or split took the amount into account
6	an * entity is required to translate the amount in an * MRRT year because:	the day on which the pre-mining project transfer or pre-mining project split happens
	(a)	the amount relates to a * pre-mining project interest the entity has after a * pre-mining project transfer or * pre-mining project split ; and
	(b)	the entity takes the amount into account in a different currency to the currency in which the entity that had the interest before the transfer or split took the amount into account
7	the amount is an amount of an * entity ' s profit for an * MRRT year that is to be translated because of subsection 185-10(5) (simplified MRRT method)	the last day of the MRRT year.

Examples of amounts covered by table item 4

185-25(2)    
The following are examples of amounts covered by table item 4:

(a) an amount of * mining expenditure for an earlier * MRRT year ;

(b) the * base value of a * starting base asset for the preceding MRRT year;

(c) the decline in value of a starting base asset, worked out under section 90-5 , for the preceding MRRT year;

(d) the amount of an * allowance component for the preceding MRRT year;

(e) the amount of an allowance component that has been applied in working out, for the preceding MRRT year, an * MRRT allowance .

Special rule about translation - events that happened before the current choice took effect

185-25(3)    
The table has effect if an * entity is required to translate an amount in an * MRRT year (the current year ) because:

(a) the amount is attributable to an event that happened, or a state of affairs that came into existence at a time (the event time ) before the start of the current year; and

(b) the amount has not, before the start of the current year, been taken into account under the * MRRT law in relation to a mining project interest or * pre-mining project interest .

Events before current choice took effect
Item	In this case …	this is the result …
1	at the event time, no previous choice under subsection 960-60(1) of the Income Tax Assessment Act 1997 was in effect in relation to the * entity	the amount is to be translated: (a) first, to Australian currency at the exchange rate applicable at the event time; and (b) then, if necessary, into the currency in which it is to be taken into account in the current year at the exchange rate applicable at the start of the current year.
2	at the event time, a previous choice under subsection 960-60(1) of the Income Tax Assessment Act 1997 was in effect in relation to the * entity	the amount is to be translated: (a) first, into the currency that, under section 960-70 of the Income Tax Assessment Act 1997 , is the entity ' s previous applicable functional currency, at the exchange rate applicable at the event time; and (b) then, if necessary, into the currency in which it is to be taken into account in the current year at the exchange rate applicable at the start of the current year.

Examples of amounts covered by subsection (3)

185-25(4)    
The following are examples of amounts covered by subsection (3) :

(a) the initial book value of a * starting base asset under subsection 90-25(3) ;

(b) an amount of * interim expenditure incurred in relation to a starting base asset.