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Income Tax Act 2007

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

IS 6: When company stops being mineral miner

You could also call this:

“When a mineral mining company stops operating but still has a tax loss”

If you are a mineral miner and you have a loss balance that is carried forward to a tax year, but you stop being a mineral miner during or before the end of that tax year, you will still be treated as if you were a mineral miner for that tax year. This rule applies for the purposes of sections IS 1 and IS 2. Even though you have stopped being a mineral miner, the law will treat you as if you had continued to be one for that specific tax year.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517834.

Topics:
Money and consumer rights > Taxes
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“Petroleum miners' tax loss rules have been removed”

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

IS 6When company stops being mineral miner

  1. For the purposes of sections IS 1 and IS 2, if a mineral miner whose loss balance is carried forward to a tax year stops being a mineral miner at or before the end of the tax year, the mineral miner is nevertheless treated for the tax year as if it had continued as a mineral miner.

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Notes
  • Section IS 6 heading: amended, on , by section 101(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section IS 6: amended, on , by section 101(2)(a) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section IS 6: amended, on , by section 101(2)(b) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section IS 6: amended, on , by section 101(2)(c) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section IS 6 list of defined terms mineral miner: inserted, on , by section 101(3)(b) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section IS 6 list of defined terms mining company: repealed, on , by section 101(3)(a) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).