Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 418 - Exploration for minerals  

Subdivision 418-B - Junior minerals exploration incentive tax offset  

Entitlement to junior minerals exploration incentive tax offset

SECTION 418-20   Entitlement of member of a trust or partnership to a share of exploration credits  

Members taken to be issued with exploration credits

418-20(1)    
If:

(a) you are a *member of a trust or partnership during the income year; and

(b) an *exploration credit is issued to the trust or partnership under Subdivision 418-E for the income year; and

(c) the trust or partnership is not a *corporate tax entity; and

(d) the trustee of the trust, or the partnership, determines that you are entitled to a share of the exploration credits issued to the trust or partnership for the income year; and

(e) the trustee of the trust, or the partnership, gives you a statement, in accordance with subsection (4), informing you of that entitlement;

you are taken, for the purposes of this Subdivision, to have been issued with an exploration credit under Subdivision 418-E , for the income year, of an amount equal to your share of the exploration credits issued to the trust or partnership for the income year.

Effect of restrictions on distributions

418-20(2)    
Despite subsection (1), you are not taken, under that subsection, to have been issued with an *exploration credit under Subdivision 418-E to the extent that, if the exploration credit referred to in paragraph (1)(b) were a *franked distribution of the same amount made:

(a) at the time of the determination referred to in paragraph (1)(d); and

(b) in relation to the interest, held by the trust or partnership, in relation to which the exploration credit referred to in paragraph (1)(b) is issued to the trust or partnership during the income year;

the terms and conditions under which the trust or partnership operates would not permit you to be paid the amount, or the proportion, of the franked distribution that would reflect your entitlement referred to in paragraph (1)(d).

Anti-avoidance

418-20(3)    
Despite subsection (1), you are not taken, under that subsection, to have been issued with an *exploration credit under Subdivision 418-E to the extent that, if the exploration credit were a distribution to you, from the trust or partnership, of a *franked distribution that:

(a) was of the same amount as the amount of your share, referred to in paragraph (1)(d), of the exploration credit referred to in paragraph (1)(b); and

(b) was made:

(i) by the same entity that issued that exploration credit; and

(ii) in relation to the same interest in that entity; and

(iii) in the same circumstances in which that exploration credit was issued; and

(c) *flowed indirectly through one or more trusts or partnerships that were the same as the one or more trusts or partnerships that, apart from subparagraphs 418-10(b)(ii) and (iii) , would have been entitled to a *tax offset under this Subdivision in relation to:

(i) that exploration credit; or

(ii) another exploration credit from which that exploration credit is directly or indirectly derived;

you would not be entitled to a tax offset under Division 207 in relation to the franked distribution.

Statements to members

418-20(4)    
A statement referred to in paragraph (1)(e) must:

(a) be in the *approved form; and

(b) be given to you on or before the due date:

(i) if the trust or partnership is an *investment body for *Part VA investments - for giving to the Commissioner an *annual investment income report in respect of the *financial year corresponding to the income year; or

(ii) otherwise - for the trust or partnership to lodge its *income tax return for the income year.

Reports to the Commissioner

418-20(5)    
A trust or partnership that has given one or more statements under paragraph (1)(e) relating to *exploration credits for an income year must give to the Commissioner, on or before the due date referred to in paragraph (4)(b) in relation to that income year, a report that:

(a) relates to all the statements that the trust or partnership has given under paragraph (1)(e) relating to exploration credits for that income year; and

(b) is in the *approved form.