INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10 - Mining and quarrying  

Subdivision A - General mining  

SECTION 122C   RESIDUAL PREVIOUS CAPITAL EXPENDITURE  

122C(1)   [Residual previous capital expenditure]  

For the purposes of this Subdivision, but subject to the succeeding provisions of this section, the residual previous capital expenditure of a taxpayer as at the end of a year of income (in this section referred to as the year of income ) shall be ascertained by deducting from the sum of:

(a) so much of the amount which, for the purposes of section 122 of the Income Tax Assessment Act 1936-1967 , was the residual capital expenditure of the taxpayer in relation to the mining property concerned at the end of the year of income that ended on 30 June 1967 as remains after deducting from that amount any part of that amount that has been allowed or is allowable as a deduction under that section from the assessable income of that year of income, less any part of that remaining amount that is attributable to expenditure of a kind referred to in section 123A of this Act;

(b) the amount of allowable capital expenditure (other than allowable capital expenditure to which paragraph (ba) applies) incurred by the taxpayer -

(i) after the year of income that ended on 30 June 1967;

(ii) on or before 17 August 1976; and

(iii) before the end of the year of income; and

(ba) any amount of allowable capital expenditure that is deemed by subsection (2) to have been incurred by the taxpayer in the year of income or in a preceding year of income,

the following amounts:

(c) any part of the expenditure included in that sum that -

(i) has been allowed or is allowable as a deduction under section 122D from the assessable income of a year of income preceding the year of income; or

(ii) (Omitted by No 107 of 1989)

(iii) (Omitted by No 107 of 1989)

(iv) was incurred on property (not being property in respect of which a notice has been duly given to the Commissioner under section 122B by the taxpayer and a person who acquired the property from the taxpayer) -

(A) that has, after the year of income that ended on 30 June 1967, been disposed of, lost or destroyed; or

(B) the use of which by the taxpayer for prescribed purposes has, after that last-mentioned year of income, been otherwise terminated,

and has not been allowed and is not allowable as a deduction from the assessable income of any year of income that ended before the year of income in which the disposal, loss, destruction or termination of use took place; and

(d) the sum of so much of any amounts specified in notices duly given to the Commissioner under section 122B in relation to the acquisition from the taxpayer, during the year of income or a preceding year of income, of a mining or prospecting right or mining or prospecting information as is attributable to expenditure that would, but for this paragraph, be included in the residual previous capital expenditure of the taxpayer as at the end of the year of income.

122C(2)   [Recommencement of use of property]  

Where -

(a) property referred to in sub-subparagraph (1)(c)(iv)(B); or

(b) property the use of which by the taxpayer for prescribed purposes has, before the commencement of the year of income that commenced on 1 July 1968, been terminated;

(c) (Omitted by No 107 of 1989)

has, after the end of the year of income that ended on 30 June 1967, come into use for purposes for which allowable capital expenditure may be incurred, so much of the capital expenditure incurred on that property on or before 17 August 1976 and before the termination of use as the Commissioner determines shall, for the purposes of this section, be deemed to have been incurred by the taxpayer, in the year of income in which the property so comes into use, for the purposes for which the property so comes into use.

122C(3)    

122C(3A)   [Income exempt under s 23(pa)]  

Where an amount of income derived by the taxpayer in a year of income, being the year of income of the taxpayer in which 27 October 1977 occurred or a subsequent year of income, (in this subsection referred to as the year of sale ) from the sale, transfer or assignment of rights to mine on any mining tenement is or has been exempt from income tax by virtue of paragraph 23(pa) and, in relation to that tenement -

(a) any excess amounts of expenditure referred to in subsection 123AA(3) of the Income Tax Assessment Act 1936-1967 have, under that subsection, been required to be deemed to be expenditure in respect of which the taxpayer was entitled to a deduction under section 122 of that Act; or

(b) any excess amounts of expenditure referred to in subsection 122J(3) of this Act have been or are required to be deemed to be allowable capital expenditure incurred in the year of sale or a prior year of income,

the residual previous capital expenditure of the taxpayer as at the end of the year of sale shall be reduced by so much of those excess amounts as has not been allowed, and is not allowable, as a deduction under section 122 of the Income Tax Assessment Act 1936-1967 or under section 122D of this Act, but so that the total amount of the reductions under this section shall not exceed the amount of the exempt income.