Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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.