INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10 - Mining and quarrying  

Subdivision A - General mining  

SECTION 122JA  

122JA   DEDUCTIONS WHERE EXEMPT INCOME DERIVED  
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.