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Income Tax Act 2007

Income - Terminating provisions

CZ 28: Transitional provision for mineral mining: previously appropriated mining expenditure

You could also call this:

“Rules for miners on tax from pre-2014 mining expenses”

If you are a mineral miner, this law might apply to you. It’s about money you set aside for mining exploration or development before the 2014-15 tax year.

If you claimed a deduction for this money under section DU 4 and reported income under section CU 9, you might owe tax for the 2014-15 tax year because of these old rules.

To help you, the law lets you split this income equally between the 2014-15 and 2015-16 tax years. This means you can spread out your tax payment over two years instead of paying it all at once.

Remember, this only applies if you set aside the money before the 2014-15 tax year and it resulted in you owing tax for that 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=DLM6035215.

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Part C Income
Terminating provisions

CZ 28Transitional provision for mineral mining: previously appropriated mining expenditure

  1. This section applies when—

  2. a mineral miner appropriates an amount of income for an income year to mining exploration expenditure or mining development expenditure; and
    1. the income year precedes the 2014–15 income year; and
      1. the mineral miner has a deduction under section DU 4 (Income appropriated to expenditure) and a corresponding amount of income under section CU 9 (Previous deduction for income appropriated) as those sections were immediately before the enactment of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014; and
        1. as a result of the application of those sections, the mineral miner has an income tax liability for the 2014–15 income year.

          1. The mineral miner may allocate the corresponding amount of income equally to the 2014–15 and 2015–16 income years.

          Notes
          • Section CZ 28: inserted, on (applying for the 2014–15 and later income years), by section 31(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).