INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
Notwithstanding any other provision of this Act, where a taxpayer derives from the working of a mining property income that is exempt from income tax in pursuance of paragraph 23(o) and income that is assessable income:
(a) allowable capital expenditure of the taxpayer does not include expenditure related directly or indirectly to the operations on that mining property, other than expenditure (not being expenditure on housing and welfare) that was incurred for the purposes of the recovery of pyrites from ore mined on that property or the transport on that property of ore mined on that property and would not have been incurred if the assessable income derived from the working of that property had not been derived; and
(b) a deduction from assessable income shall not be allowed in respect of or in relation to:
(i) losses or outgoings, not being losses or outgoings of capital or of a capital nature, incurred by the taxpayer in the year of income in relation to the working of the property, to the extent to which they would have been incurred if the assessable income derived from the working of that property had not been derived;
(ii) depreciation of a unit of plant used, or installed ready for use, in connexion with the working of that property, other than a unit of plant used in the recovery of pyrites from ore mined on that property or in the transport on that property of ore mined on that property and being a unit of plant that would not have been required if the assessable income derived from the working of that property had not been derived;
(iii) an amount appropriated by the taxpayer for expenditure for purposes that are, to any extent, related to gaining or producing that exempt income;
(iv) so much of an amount otherwise allowable as a deduction under subsection 122K(3) as, in the opinion of the Commissioner, should, having regard to the operation of the preceding provisions of this section, be excluded from the allowable deductions; or
(v) a premium paid by the taxpayer in relation to a lease of the mining property.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.