Section CX 44 — Income Tax Act 2007: Disposal of mining shares

CX 44 Disposal of mining shares When subsection (2) applies (1) Subsection (2) applies when— (a) a mining company derives an amount from disposing of a mining share; and (b) the disposal is to a person other than a mining company or a mining holding company; and (c) the company has an excess amount because the amount derived from disposing of the share is more than the cost of the share calculated under section DU 11(2) (Disposal of mining shares by company); and (d) the excess amount would, in the absence of this section, be income of the company under any of sections CB 1 to CB 5 (which relate to income from business or trade-like activities). Excluded income (2) The excess amount is excluded income of the company to the extent to which it is, or is to be, used for mining purposes in the prescribed period. When subsection (4) applies (3) Subsection (4) applies when— (a) a mining company (the seller ) derives an amount from disposing of a mining share; and (b) the disposal is to a mining company or to a mining holding company (the buyer ); and (c) the seller has an excess amount because the amount derived from disposing of the share is more than the cost of the share calculated under section DU 11(2) ; and (d) the excess amount would, in the absence of this section, be income of the seller under any of sections CB 1 to CB 5 . Excluded income (4) The excess amount is excluded income of the seller to the extent to which it consists of mining shares issued to it in the buyer. Defined in this Act: amount , excluded income , income , mining company , mining holding company , mining purposes , mining share , prescribed period Compare: 2004 No 35 s CX 38