INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 16H - Termination of gold mining exemptions  

Subdivision B - Division 10 and related provisions  

SECTION 159GZZR   ELIGIBLE GOLD EXPLORATION OR PROSPECTING EXPENDITURE - 7 YEAR LIMIT ON DEDUCTIBILITY  

159GZZR(1)   [Excess]  

Where:

(a) an excess amount referred to in subsection 122J(4C) would, apart from this subsection, be deemed for the purposes of subsection 122J(1) to have been incurred by a taxpayer in a year of income;

(b) the excess amount consists wholly or partly of an amount of deemed gold exploration or prospecting expenditure; and

(c) the year of income begins more than 7 years after the day on which the eligible gold exploration or prospecting expenditure that gave rise to the deemed gold exploration or prospecting expenditure was incurred;

the excess amount shall not, to the extent to which it consists of the amount of deemed gold exploration or prospecting expenditure, be deemed to have been incurred as mentioned in paragraph (a).

159GZZR(2)   [References to expenditure in sec 122B(2)(b)]  

Where:

(a) in applying section 122B in relation to a transaction taking place during a year of income, paragraph (2)(b) of that section would, apart from this subsection, refer to an amount of expenditure of a vendor under section 122J that has not been allowed and is not allowable as a deduction;

(b) the amount of expenditure consists wholly or partly of an amount of deemed gold exploration or prospecting expenditure; and

(c) the year of income begins more than 7 years after the day on which the eligible gold exploration or prospecting expenditure that gave rise to the deemed gold exploration or prospecting expenditure was incurred;

paragraph 122B(2)(b) shall be taken not to refer to the expenditure to the extent to which it consists of such an amount of deemed gold exploration or prospecting expenditure.