MINERALS RESOURCE RENT TAX ACT 2012 [ REPEALED]

CHAPTER 4 - SPECIALIST LIABILITY RULES  

PART 4-4 - VALUATION  

Division 180 - Valuation of starting base assets using the look-back approach  

Operative provisions  

SECTION 180-10   THE EFFECT OF THE LOOK-BACK APPROACH ON VALUATION OF MINING PROJECT INTERESTS  

180-10(1)  
If the * entity has made a choice under section 180-5 relating to the mining project interest or * pre-mining project interest , in working out the declines in value, for an * MRRT year to which this section applies, of the * starting base assets that relate to:


(a) the mining project interest to which the choice relates; or


(b) a mining project interest that * originates from the pre-mining project interest to which the choice relates;

use the assumptions set out in subsection (3) of this section.

180-10(2)  
This section applies to the * MRRT year in which the * start time for the * starting base assets happens, and to any later MRRT years.

180-10(3)  
The assumptions are that:


(a) all of the * starting base assets were a single starting base asset; and


(b) for the purposes of working out the * base value of that single starting base asset under section 90-40 , the * market value of the asset on 1 May 2010 were the amount worked out under subsection (4) ; and


(c) for the purposes of working out the remaining effective life of that single starting base asset under section 90-15 , subsection 90-15(3) applies as if the asset were treated as a single starting base asset because of section 80-30 .

Note:

Any amounts of interim expenditure relating to the asset would be included in the base value of the asset for the year: see subparagraph 90-40(1)(a)(ii).

180-10(4)  
For the purposes of paragraph (3)(b), the * market value of the asset on 1 May 2010 is the sum of all the amounts that, if the * MRRT law had been in force from 2 May 2000, would have been * pre-mining expenditure , incurred between 2 May 2000 and 1 May 2010, that:


(a) if the choice under section 180-5 relates to a mining project interest:


(i) related to the * pre-mining project interest from which the mining project interest * originates ; and

(ii) was incurred by the entity that * held the pre-mining project interest at the time the expenditure was incurred; or


(b) if the choice under section 180-5 relates to a pre-mining project interest - was incurred by the entity that held the pre-mining project interest at the time the expenditure was incurred.


 

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