Section CU 14 — Income Tax Act 2007: Recovery of reinvestment profit on disposal of mining shares

CU 14 Recovery of reinvestment profit on disposal of mining shares When this section applies (1) This section applies when— (a) a company derives an amount from disposing of a mining share, including a disposal described in section CU 20 ; and (b) an amount of the company’s reinvestment profit is used in calculating the deduction for the cost of the mining share under section DU 11(2)(b) (Disposal of mining shares by company). Income (2) The lesser of the following amounts is income of the company: (a) the amount derived from the disposal of the mining share minus the deduction for the cost of the mining share; and (b) the amount of reinvestment profit used in calculating the deduction for the cost of the mining share. Timing of income (3) The income is allocated to the income year in which the mining share is disposed of. Relationship with sections CX 44 and CX 45 (4) This section is overridden by sections CX 44 (Disposal of mining shares) and CX 45 (Disposal of mining shares acquired with reinvestment profit). Defined in this Act: amount , company , deduction , income , income year , mining share , reinvestment profit , Compare: 2004 No 35 s CU 14