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CS 18: Value of loan treated as fund income
or “Old rule about loans counting as fund income no longer applies”
You could also call this:

“Rules for taxing money from selling mining materials or assets”

When you, as a petroleum miner, sell exploratory material, the money you get from that sale is counted as your income.

If you sell a petroleum mining asset, the money you get from that sale is also counted as your income.

However, there are some exceptions to these rules. If you’re involved in a farm-out arrangement for mining operations, a different rule applies. You can find more information about this in section CX 43.

Also, there’s a special rule for certain petroleum storage facilities. This rule changes how the sale of these facilities is treated for income purposes. You can read more about this in section CZ 32.

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Next up: CT 2: Damage to assets

or “Petroleum miners must count money received for certain damaged assets as income”
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Part C Income
Income from petroleum mining

CT 1Disposal of exploratory material or petroleum mining asset

  1. The consideration that a petroleum miner derives from disposing of exploratory material is income of the petroleum miner.

  2. The consideration that a petroleum miner derives from disposing of a petroleum mining asset is income of the petroleum miner.

  3. This section is overridden by section CX 43 (Farm-out arrangements for mining operations).

  4. Section CZ 32 (Treatment of certain petroleum storage facilities) overrides subsection (2).

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Notes
  • Section CT 1(3): amended, on , by section 11 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section CT 1(4) heading: inserted, on , by section 20 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
  • Section CT 1(4): inserted, on , by section 20 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).