Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 419 - Critical minerals (tax offset for Australian production expenditure)  

Subdivision 419-B - CMPTI expenditure  

SECTION 419-25   Meaning of CMPTI expenditure  

419-25(1)    
CMPTI expenditure , of a company for an income year, is expenditure the company incurs during the income year to the extent that:

(a)    the expenditure is incurred in carrying on one or more of the company ' s * registered CMPTI processing activities for the income year at facilities specified in the certificates of registration for those activities; and

(b)    the expenditure is paid during the income year, if at the time the expenditure is incurred:

(i) the company, and the entity to which the expenditure is incurred, are not dealing with each other at * arm ' s length; or

(ii) the entity to which the expenditure is incurred is the company ' s * associate.

Excluded expenditure

419-25(2)    
Despite subsection (1) , CMPTI expenditure does not include any expenditure the company incurs to the extent that the expenditure:

(a)    is capital, or is of a capital nature; or

(b)    is taken into account when calculating the decline in value of an asset for the purposes of a * taxation law; or

(c)    is incurred by way of, or in relation to, the financing of * registered CMPTI processing activities; or

(d)    is on feedstock, whether raw materials (such as ores or mineral concentrates) or intermediate outputs from a previous processing step; or

(e)    would result in more than 10 % of the company ' s CMPTI expenditure for the income year being incurred on or in relation to * intellectual property; or

(f)    is of a kind prescribed by the regulations.

Note:

Similarly, subsection (1) means CMPTI expenditure does not include expenditure to the extent that the expenditure is incurred in carrying on:

(a) a registered CMPTI processing activity at a facility not specified in the certificate of registration for the activity; or

(b) an activity that is not a registered CMPTI processing activity.

419-25(3)    
Despite subsection (1) , if carrying on one or more of the company ' s * registered CMPTI processing activities results in an output that:

(a)    would, if the output were the only output of the activities, mean the activities are not * CMPTI processing activities; and

(b)    is disposed of, or is used to produce another output that is disposed of, in a way that:

(i) is for value; or

(ii) involves the company and another entity not dealing with each other at * arm ' s length; or

(iii) is to an * associate of the company;

CMPTI expenditure
does not include so much of the company ' s expenditure incurred in carrying on those activities as is reasonably attributable to the first-mentioned output.