Document ID: chunk:federal_register_of_legislation:C2010C00673:body:0:p3
Version: federal_register_of_legislation:C2010C00673
Segment Type: other
Provision Reference: 
Character Range: 5525–8351

1 - MINING AND PETROLEUM CASH BIDDING
1. Object
The object of this Part is:
  (a) to provide for deductibility of cash bidding payments to
acquire exploration or prospecting authorities and mining
authorities; and
  (b) to extend to on-shore areas the coverage of the existing
provisions relating to deductibility of cash bidding payments
to acquire petroleum exploration permits and production
licences.
2. Paragraphs 122A(1)(a),(b) and (c):
Add at the end "or".
3. After paragraph 122A(1)(d):
Insert:
  "(da) expenditure that the taxpayer is taken to have incurred
by section 122BA; or".
4. Subsection 122B(1):
Add at the end "that has not been the subject of an agreement
made under subsection 122BA(5)".
5. After section 122B:
Insert:
Allowable capital expenditure in respect of cash bidding
payments to acquire exploration or prospecting authorities or
mining authorities
Summary of section
  "122BA. (1) This section provides for certain exploration or
prospecting cash bidding payments and mining cash bidding
payments to be capital expenditure incurred by a taxpayer for
the purposes of this Division.
Mining cash bidding payments
  "(2) Each mining cash bidding payment paid by a taxpayer is,
for the purposes of this Division, expenditure of a capital
nature incurred by the taxpayer:
  (a) if the amount is paid before the grant of the mining
authority concerned-at the time of the grant; and
  (b) in any other case-at the time the payment is made.
Exploration or prospecting cash bidding payments made when
mining authority has been granted
  "(3) If:
  (a) a taxpayer makes an exploration or prospecting cash
bidding payment in relation to the grant of an exploration or
prospecting authority; and
  (b) the payment is made at or after the time of the grant of
a mining authority that is related to the exploration or
prospecting authority;
the amount of the payment is, for the purposes of this
Division, expenditure of a capital nature incurred by the
taxpayer at the time of payment.
Exploration or prospecting cash bidding payments made before
mining authority has been granted
  "(4) If:
  (a) a mining authority is granted; and
  (b) it is the first or only mining authority that is related
to a particular cash bidding exploration or prospecting
authority; and
  (c) immediately before the grant of the mining authority a
taxpayer who has a qualifying interest or qualifying interests
in relation to the exploration or prospecting authority also
has an entitlement to an eligible cash bidding amount in
relation to the exploration or prospecting authority;
the taxpayer is taken for the purposes of this Division to have
incurred, at the time the mining authority is granted,
expenditure of a capital nature in relation to the qualifying
interest or qualifying interests of an amount equal to the
eligible