Taxation Ruling IT 363 (Addenda exist) - Mining company : application of Division 10 to principal and sub-contractors engaged in mining operations

What this ruling is about: Consideration was given to the ascertainment of entitlement to Division 10 deductions where a transport company subcontracted to provide all cartage (including the removal of overburden and transport of ore) for the principal contractor who is engaged in mining operations.


Ruling: 2. It is accepted that the company is entitled to Division 10 deductions in respect of its operations at the mine. 3. In C.I.T.C.M. 667, paragraphs 10 and 11, the deductions provided by the then Division 10 were expressed not to be restricted to mine owners and lessees but to extend to contractors who carry out the operations on the mining property for the recovery of the deposit being sought. This interpretation was consistent with the terminology of the Division which operated where a person incurred relevant expenditure in connexion with the carrying on by him of mining operations upon a mining property. There was no inbuilt restriction limiting the operation of the Division to mine owners or lessees - rather it applied to operations rather than to persons. COMMISSIONER OF TAXATION 18 December 1974




View the Addendum notice for this document. | View the Addendum (2) notice for this document. | Date original memo issued: 18.12.74


Legislative references: DIVISION 10 122
Subject references: MINING COMPANY - CONTRACTORS