Section CU 26 — Income Tax Act 2007: Meaning of mining venture

CU 26 Meaning of mining venture Meaning (1) Mining venture means a venture that— (a) is carried on, or is proposed to be carried on,— (i) in New Zealand; and (ii) as a business; and (iii) under an exploration permit, prospecting permit, or mining permit granted under the Crown Minerals Act 1991 or under an existing privilege as defined in section 106 of that Act; and (b) consists, or is proposed to consist, wholly or mainly of— (i) exploring, searching, or mining for a specified mineral in New Zealand; or (ii) performing development work for exploring, searching, or mining for a specified mineral in New Zealand. Service for reward (2) An activity described in subsection (1)(b) does not include an activity done or to be done as a service to another person for reward unless the reward— (a) is wholly or mainly related to and dependent on the production of the specified mineral; or (b) arises wholly or mainly through participation in profits from the production of the specified mineral. Activities not carried on jointly (3) If 2 or more persons carry on, or propose to carry on, a joint mining venture, but 1 or more of them carries on an activity of the kind described in subsection (1)(b) outside the joint mining venture, the carrying on of the activity is not part of the joint mining venture. Defined in this Act: business , mining venture , New Zealand , specified mineral , Compare: 2004 No 35 s CU 26