Section CU 4 — Income Tax Act 2007: Compensation for lost, destroyed, or damaged assets

CU 4 Compensation for lost, destroyed, or damaged assets When sections CU 5 to CU 8 apply (1) Sections CU 5 to CU 8 apply when— (a) a mining company acquires an asset by incurring mining exploration expenditure or mining development expenditure; and (b) the company is allowed a deduction for the expenditure under— (i) section DU 1 (Mining exploration expenditure and mining development expenditure); or (ii) section DZ 12(1)(a) (Mineral mining: 1954–2005); and (c) the asset is lost, destroyed, or damaged; and (d) the company, whether or not still a mining company,— (i) is paid insurance, indemnity, or compensation for the loss, destruction, or damage; or (ii) is entitled to receive payment for any scrap of the asset that it disposes of. What sections CU 5 to CU 8 apply to (2) Sections CU 5 to CU 8 apply to any asset ( asset A ) that a mining company acquires by incurring mining exploration expenditure or mining development expenditure, except for an asset ( asset B ) used to derive income other than income from mining to which section CU 10 is applied. Sections CU 5 to CU 8 apply to asset B only if it is later used to derive income from mining and section DU 5 (Non-mining asset used to derive income from mining) is applied to it. Defined in this Act: asset , company , deduction , income , income from mining , mining company , mining development expenditure , mining exploration expenditure , pay , Compare: 2004 No 35 s CU 4