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INCOME TAX ASSESSMENT ACT 1997 - SECT 104.45

Granting a right to income from mining: CGT event D3

  (1)   CGT event D3 happens if you own a * prospecting entitlement or * mining entitlement, or an interest in one, and you grant another entity a right to receive * ordinary income or * statutory income from operations permitted to be carried on by the entitlement.

Note:   If this event applies, there is no disposal of the entitlement.

  (2)   The time of the event is:

  (a)   when you enter into the contract with the other entity; or

  (b)   if there is no contract--when you grant the right to receive * ordinary income or * statutory income.

  (3)   You make a capital gain if the * capital proceeds from the grant of the right are more than the expenditure you incurred in granting it. You make a capital loss if those capital proceeds are less .

  (4)   The expenditure can include giving property: see section   103 - 5. However, it does not include an amount you have received as * recoupment of it and that is not included in your assessable income, or an amount to the extent that you have deducted or can deduct it.



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