Taxation Ruling

IT 363A2 - Addendum

Mining company: application of Division 330 to principal and sub-contractors engaged in mining operations

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Addendum

This Addendum amends Taxation Ruling IT 363 to reflect the changes to the law caused by the repeal of inoperative provisions.

Taxation Ruling IT 363 is amended as follows:

1. Heading

Omit 'Division 330'; substitute 'Subdivision 40-I of the Income Tax Assessment Act 1997'.

2. Preamble

Omit 'Division 330 deductions'; substitute 'deductions for mining capital expenditure under Subdivision 40-I of the Income Tax Assessment Act 1997 (ITAA 1997)'.

3. Paragraph 2

Omit the paragraph; substitute:

2. It is accepted that the company is entitled to deductions for mining capital expenditure under Subdivision 40-I of the ITAA 1997 in respect of its operations at the mine. In this example the transport company carried out all the operations on the mining property for the recovery of the deposit being sought. If, however, a contractor merely transported, say, coal out of a mine, the activities would not be treated as mining operations and the contractor would not be entitled to deductions for mining capital expenditure under Subdivision 40-I of the ITAA 1997.

4. Paragraph 3

(a) Omit 'connexion'; substitute 'connection'.

(b) Insert after the last sentence 'The same interpretation applies to deductions for mining capital expenditure under Subdivision 40-I of the ITAA 1997.'

(c) Omit the note.

5. Legislation references

(a) Omit:

Division 10

122

(b) Insert:

ITAA 1997 Subdiv 40-I

This Addendum applies on and from 30 April 2008.

Commissioner of Taxation
30 April 2008

References

ATO references:
NO 2006/20258

Related Rulings/Determinations:

IT 363
IT 363A - Addendum