INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10 - Mining and quarrying  

Subdivision A - General mining  

SECTION 122DB   DEDUCTION OF RESIDUAL CAPITAL EXPENDITURE  

122DB(1)   [Allowable deduction]  

Where, as at the end of the year of income there is, in relation to a taxpayer, an amount of residual capital expenditure, an amount ascertained in accordance with this section is an allowable deduction.

122DB(1A)   [No operation 1997/98 year onwards]  

A deduction is not allowable under subsection (1) for the 1997-98 year of income or any later year of income.

Note:

Section 330-1 of the Income Tax (Transitional Provisions) Act 1997 converts any undeducted residual capital expenditure at the end of the 1996-97 year of income into allowable capital expenditure incurred by a taxpayer in the 1997-98 year of income.

122DB(2)   [Calculation of deduction]  

Subject to subsection (3), the deduction allowable is the amount ascertained by dividing the amount of residual capital expenditure referred to in subsection (1) by -

(a) a number equal to the number of whole years in the estimated life of the mine or proposed mine on the mining property, or, if there is more than one such mine, of the mine that has the longer or longest estimated life, as at the end of the year of income; or

(b) 5,

whichever number is the less.

122DB(3)   [Maximum deduction]  

Unless the taxpayer makes an election under subsection (4) in relation to the year of income, the amount, or the total of the amounts, of the deduction or deductions allowable under this section shall not exceed an amount equal to so much of the assessable income of the year of income as remains after deducting all allowable deductions, other than deductions allowable under this section or under section 122DD , 122DF , 122DG or 122J , and, where the total of the amounts of 2 or more deductions that would be allowable under this section but for this subsection exceeds the maximum amount determined in accordance with this subsection, those deductions shall be reduced respectively by amounts proportionate to those deductions and equal in total to the excess.

122DB(4)   [Election by taxpayer]  

A taxpayer may elect, in relation to a year of income that subsection (3) shall not apply in respect of the taxpayer.

122DB(5)   [Commissioner's discretion re life of mine]  

Where, having regard to the information in his possession, the Commissioner is not satisfied that the estimated life of a mine or a proposed mine as made by the taxpayer is a reasonable estimate, the estimated life shall, for the purposes of subsection (2), be taken to be such period as the Commissioner considers reasonable.