Private ruling: Disposal of mining, quarrying or prospecting rights held prior to 1 July 2001
Date of advice: 2 October 2015
Published: November 2015
Ruling period: Income year ending 30 June 2016 | Income year ending 30 June 2017
Date scheme commenced: Income year ending 30 June 2016

Ruling: Q1: Will subsection 40-77(2) of the Income Tax (Transitional Provisions) Act 1997 apply to limit the cost for the purposes of Division 40 of the Income Tax Assessment Act 1997 of mining, quarrying or prospecting rights acquired by the Purchaser? | A1: No

Relevant facts and circumstances: The Vendor and Purchaser will enter into an agreement to sell mining, quarrying or prospecting rights that the Vendor started to hold before 1 July 2001. The Purchaser is not an associate of the Vendor.

Relevant legislative provisions: Income Tax (Transitional Provisions) Act 1997 subsection 40-77(2) | Income Tax Assessment Act 1936 section 318

Reasons for decision: Summary: The Commissioner ruled on the question asked.