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Income Tax Act 2007

Income - Income from mineral mining

CU 5: Partnership interests and disposal of part of asset

You could also call this:

“How partners own and sell mining assets in a partnership”

When you’re part of a partnership that deals with mineral mining, this law explains how your share in the partnership’s assets works. If you’re a partner, you own a part of any mineral mining asset or other property that the partnership has. The size of your share matches how much of the partnership’s income you’re entitled to.

This law also says that when it talks about selling an asset, it means the same thing as selling part of an asset. So, if you or the partnership sell only a piece of something, the rules still apply.

These rules are used in other parts of the tax law too. They’re used when talking about mineral mining expenses, farm-out arrangements for mining, and when looking at arrangements involving petroleum and mineral mining.

Remember, this is just a general explanation. Sometimes, depending on the situation, these rules might be understood differently.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512988.

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“Repaying tax deductions when mineral exploration costs lead to production”

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CU 6: Meaning of mineral miner, or

“Who qualifies as a mineral miner for income tax purposes”

Part C Income
Income from mineral mining

CU 5Partnership interests and disposal of part of asset

  1. In this subpart and subpart DU (Mineral mining expenditure), and in sections CX 43 (Farm-out arrangements for mining operations), and GB 20 (Arrangements involving petroleum and mineral mining) unless the context otherwise requires,—

  2. a partner is treated as having a share or interest in a mineral mining asset or other property of a partnership to the extent of their interest in the income of the partnership:
    1. references to the disposal of an asset apply equally to the disposal of part of an asset.

      Notes
      • Section CU 5: replaced, on (applying for the 2014–15 and later income years), by section 14(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).