Section DU 9 — Income Tax Act 2007: Application of sections to resident mining operators

DU 9 Application of sections to resident mining operators Sections of this subpart applying to resident mining operators (1) Sections DU 1 to DU 3 , and DU 5 to DU 7 apply, with any necessary modifications, to resident mining operators as if resident mining operators were mining companies. Additional modification of section DU 6 (2) For the purposes of subsection (1), section DU 6(1)(a)(ii) applies as described in section DZ 12(2)(b) (Mineral mining: 1954–2005). Application of section DU 7 (3) When a resident mining operator has a mining outgoing excess, the total of deductions that it is allowed in the income year for expenditure or loss taken into account in the mining expenditure item of the formula in section DU 7(5) is no more than the lesser of— (a) the total amount of the expenditure and loss; and (b) the prescribed amount for the income year. Meaning of prescribed amount (4) Prescribed amount means 50% of the amount by which the income that the resident mining operator derives in an income year, other than from its mining operations or associated mining operations, is more than the total of the expenditure and losses, for which it is allowed deductions, that it incurs in the income year in deriving the income. Relationship with sections IA 2 to IA 5 and IS 2 (5) Expenditure or loss of a resident mining operator for which it would be allowed a deduction in an income year in the absence of subsection (3) is a tax loss component of the operator in the income year for the purposes of sections IA 2 to IA 5 and IS 2 (which relate to the use of tax losses). Defined in this Act: amount , associated mining operations , deduction , income , income year , loss , mining company , mining operations , mining outgoing excess , prescribed amount , resident mining operator , tax loss component , Compare: 2004 No 35 s DU 9