MINERALS RESOURCE RENT TAX ACT 2012 (REPEALED)

CHAPTER 4 - SPECIALIST LIABILITY RULES  

PART 4-6 - INTEGRITY MEASURES  

Division 205 - Anti-profit shifting  

Operative provisions  

SECTION 205-10   AMOUNTS TO REFLECT INDEPENDENT DEALINGS  

205-10(1)    
This section applies in relation to a mining project interest a miner has, or a * pre-mining project interest an * entity * holds , for an * MRRT year if:

(a) conditions operate between the miner or entity and one or more other entities in their commercial or financial relations that relate to things done, or to be done, in relation to the mining project interest or pre-mining project interest; and

(b) those conditions are different from the conditions (the independent conditions ) that operate in comparable circumstances between independent entities dealing wholly independently with one another; and

(c) if the independent conditions had instead operated, one or more of the following would, or could reasonably be expected to, apply:

(i) the * mining profit (if any) for the mining project interest for the year or the * pre-mining profit (if any) for the pre-mining project interest for the year would be larger, or could reasonably be expected to be, larger;

(ii) the * allowance components (if any) for the mining project interest or pre-mining project interest for the year would be smaller, or could reasonably be expected to be, smaller;

(iii) an offset under Division 45 (low profit offsets) or Division 225 (rehabilitation tax offsets) the miner or entity has for the year would be smaller, or could reasonably be expected to be, smaller.

205-10(2)    
For the purposes of paragraph (1)(b):

(a) circumstances mentioned in that paragraph are comparable if, to the extent that they materially affect the independent conditions, they are the same as the circumstances of the miner or * entity and one or more other entities mentioned in paragraph (1)(a); and

(b) conditions mentioned in that paragraph are different from the independent conditions if a condition exists that is not one of the independent conditions or if a condition does not exist that is one of the independent conditions.

205-10(3)    
The * MRRT law has effect as if:

(a) the amounts to which paragraph (1)(c) applies; and

(b) any amounts that are elements in the calculation of those amounts;

were the amounts that would be, or could reasonably be expected to be, those amounts if the independent conditions had instead operated.