Section DU 11 — Income Tax Act 2007: Disposal of mining shares by company

DU 11 Disposal of mining shares by company Deduction (1) When a company disposes of a mining share, the company is allowed a deduction for the cost of the share to it. Amount of deduction (2) The cost of the share to the company is the difference between the following 2 sums: (a) the total of— (i) the consideration that the company gave to acquire the share; and (ii) any capital the company contributed later for the share: (b) the total of— (i) any reinvestment profit of the company included in the consideration that the company gave; and (ii) any reinvestment profit of the company included in the capital that the company contributed. Link with subpart DA (3) This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply. Defined in this Act: capital limitation , company , deduction , general limitation , general permission , mining share , reinvestment profit , Compare: 2004 No 35 s DU 11