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Edited version of your written advice
Authorisation Number: 1012884664097
Date of advice: 2 October 2015
Ruling
Subject: Disposal of mining, quarrying or prospecting rights held prior to 1 July 2001
Question 1
Will subsection 40-77(2) of the Income Tax (Transitional Provisions) Act 1997 apply to limit the cost for the purposes of Division 40 of the Income Tax Assessment Act 1997 of mining, quarrying or prospecting rights acquired by the Purchaser?
Answer
No
This ruling applies for the following periods:
Income year ending 30 June 2016
Income year ending 30 June 2017
The scheme commences on:
Income year ending 30 June 2016
Relevant facts and circumstances
The Vendor and Purchaser will enter into an agreement to sell mining, quarrying or prospecting rights that the Vendor started to hold before 1 July 2001.
The Purchaser is not an associate of the Vendor.
Relevant legislative provisions
Income Tax (Transitional Provisions) Act 1997 subsection 40-77(2)
Income Tax Assessment Act 1936 section 318
Reasons for decision
The Commissioner ruled on the question asked.