2011

Tax Treatment of Mining Compensation Payments

Source: QLD

Published Date: 7 Nov 2011

 
As a result of exploration or production activity on their land, landholders may receive compensation under the Petroleum and Gas (Production and Safety) Act 2004 or the Minerals Resources Act 1989. The compensation for exploration and production under Petroleum and Gas (Production and Safety) Act and for exploration under the Mineral Resources Act the compensation amounts may relate to the deprivation of possession of the surface of the land, diminution in the value of the land or diminution in the use made or that may be made of the land or any improvement on it, severance of any part of the land, any cost, damage or loss arising from the carrying out of the activities and consequential damages relating to the foregoing. For production under the Mineral Resources Act the compensation is likely to be different.

The taxation treatment of the compensation payments is complex and includes a consideration of the application of GST, income tax and capital gains tax rules to the compensation payments.

This event was for legal and accounting professionals who advise landholders on the contractual and taxation issues associated with land access arrangements for gas and mineral exploration and production.

Taxation of mining compensation payments

Author(s): Richard Wheeler CTA

Tax treatment of mining compensation payments

Author(s): Glen Martin

Details

  • Published On:7 Nov 2011
  • Took place at:Burke and Wills Hotel, Toowoomba

The material is copyright. Apart any fair dealing for the purpose of private study,

research critisism or review, as permitted under the copyright Act, no part may be rerpoduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

This material is copyright. Apart from any fair dealing for the purpose of private study., research, critisism or review, as permitted under teh copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opininons are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

Tags

2011

Share this page