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Income Tax Act 2007

Treatment of tax losses - Mineral miners' and petroleum miners' tax losses

IS 1: General treatment of mineral miners' net losses

You could also call this:

“How mineral miners' tax losses are treated differently”

If you are a company that mines minerals, you cannot share your tax losses with other companies in your group during a tax year. This means you can’t use section IC 5 to make your tax loss available to another company in your group.

If you are a mineral miner and part of a consolidated group, any net mining loss you have is handled under this part of the law, not under subpart ID which deals with how consolidated groups use tax losses.

A net mining loss is a special type of loss that only applies to mineral miners. It’s a part of your total loss that is described in section IA 7(7) of the law. This section talks about restrictions on certain types of tax losses.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517824.

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Part I Treatment of tax losses
Mineral miners' and petroleum miners' tax losses

IS 1General treatment of mineral miners' net losses

  1. In a tax year in which a company that is a mineral miner is included in a group of companies, the company may not make a tax loss available under section IC 5 (Company B using company A’s tax loss) to another member of the group of companies.

  2. A net mining loss of a mineral miner that is part of a consolidated group is dealt with under this subpart and not subpart ID (Use of tax losses by consolidated groups).

  3. For the purposes of this subpart, a net mining loss means that part of a net loss of a mineral miner that is described in section IA 7(7) (Restrictions relating to ring-fenced tax losses).

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Notes
  • Section IS 1 heading: replaced, on , by section 97(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section IS 1(1): replaced (with effect on 1 April 2014 and applying for the 2014–15 and later income years), on , by section 152(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section IS 1(2): amended, on , by section 97(3) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section IS 1(2): amended (with effect on 1 April 2008), on , by section 68(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
  • Section IS 1(3) heading: added (with effect on 1 April 2008), on , by section 68(3) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
  • Section IS 1(3): replaced, on , by section 97(4) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section IS 1 list of defined terms mining company: repealed, on , by section 97(5)(a) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section IS 1 list of defined terms mineral miner: inserted, on , by section 97(5)(b) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section IS 1 list of defined terms net mining loss: inserted (with effect on 1 April 2008), on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
  • Section IS 1 list of defined terms tax loss: replaced (with effect on 1 April 2014), on , by section 152(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).