Page 253 - Juta's Indirect Tax

s 5 MINERAL AND PETROLEUM RESOURCES ROYALTY ACT 28 OF 2008 s 6
handling of those re ned mineral resources after those mineral resources were re ned to that condition or any expenditure incurred in respect of transport, insurance and handling to effect the disposal of that mineral resource; or
(ii) in the case of mineral resources brought to the condition speci ed in Schedule 2 for those mineral resources, any deduction for expenditure incurred in respect of transport, insurance and handling of those unre ned mineral resources after those mineral resources were brought to that condition or any expenditure incurred in respect of transport, insurance and handling to effect the disposal of that mineral resource;
[Para. (c) substituted by s. 98 (1) (e) of Act 17 of 2009.]
(d) any balance of assessed loss mentioned in section 20 (1) (a) of the Income Tax Act, unless the balance of assessed loss arises in respect of capital expenditure taken into account for purposes of paragraph 5 (1) of
the Tenth Schedule of the Income Tax Act;
(e) any deduction allowed in terms of section 24I of the Income Tax Act other than a deduction in respect of
the adjustment referred to in section 6(5); or
[Para. (e) substituted by s. 132 (1) (e) of Act 132 (1) (c) of Act 7 of 2010.]
(f) any determination in respect of an impermissible tax avoidance arrangement contemplated in Part IIA of the Income Tax Act.
(g) . . .
[Para. (g) deleted by s. 184 (1) (c) of Act 31 of 2013 – date
of commencement: 1 March 2014; the deletion applies iro a mineral resource transferred on or after that date.]
(4) (a) For purposes of determining ‘earnings before interest and taxes’ in the case of a composite of re ned mineral resources and unre ned mineral resources, the re ned and unre ned proportions of the composite mineral resource must be determined in accordance with a method of reasonable apportionment that is consistently applied.
(b) For purposes of determining ‘earnings before interest and taxes’, if the value of the re ned proportion of a composite mineral resource does not exceed 10 per cent of the total value of that composite resource, that composite mineral resource may be treated solely as an unre ned mineral resource, and if the value of the unre ned proportion of a composite mineral resource does not exceed 10 per cent of the total value of that composite mineral resource, that composite mineral resource may be treated solely as a re ned mineral resource.
[Para. (b) substituted by s. 98 (1) (f) of Act 17 of 2009.]
(5) For purposes of this section, if ‘earnings before interest and taxes’ is a negative amount that amount is deemed to be nil.
6 Gross sales
(1) Gross sales in respect of a re ned mineral resource transferred—
(a) as mentioned in paragraph (a) of the de nition of
‘transfer’ in section 1 in the condition speci ed for that mineral resource in Schedule 1 is the amount received or accrued during the year of assessment in respect of the transfer of that mineral resource;
(b) as mentioned in paragraph (a) of the de nition of ‘transfer’ in section 1 in a condition other than that speci ed for that mineral resource in Schedule 1 is the amount that would have been received or accrued during the year of assessment in respect of the transfer of that mineral resource had that mineral resource been transferred in the condition speci ed
Juta’s IndIrect tax 2016
in Schedule 1 for that mineral resource in terms of a
transaction entered into at arm’s length; and
(c) as mentioned in paragraph (b) or (c) of the de nition of ‘transfer’ in section 1 is the amount that would have been received or accrued during the year of assessment in respect of the transfer of that mineral resource had that mineral resource been transferred in the condition speci ed in Schedule 1 for that mineral resource in
terms of a transaction entered into at arm’s length.
(2) Gross sales in respect of an unre ned mineral
resource transferred—
(a) as mentioned in paragraph (a) of the de nition of
‘transfer’ in section 1 in the condition speci ed in Schedule 2 for that mineral resource is the amount received or accrued during the year of assessment in respect of the transfer of that mineral resource;
(b) as mentioned in paragraph (a) of the de nition of ‘transfer’ in section 1 in a condition other than that speci ed for that mineral resource in Schedule 2 is the amount that would have been received or accrued during the year of assessment in respect of the transfer of that mineral resource had that mineral resource been transferred in the condition speci ed in Schedule 2 for that mineral resource in terms of a transaction entered into at arm’s length; and
(c) as mentioned in paragraph (b) or (c) of the de nition of ‘transfer’ in section 1 is the amount that would have been received or accrued during the year of assessment in respect of the transfer of that mineral resource had that mineral resource been transferred in the condition speci ed in Schedule 2 for that mineral resource in terms of a transaction entered into at arm’s length.
(3) (a) For purposes of subsection (1), gross sales is determined without regard to any expenditure incurred in respect of transport, insurance and handling of a re ned mineral resource after that mineral resource was re ned to the condition speci ed in Schedule 1 for that mineral resource or any expenditure incurred in respect of transport, insurance and handling to effect the disposal of that mineral resource.
(b) For purposes of subsection (2), gross sales is determined without regard to any expenditure incurred in respect of transport, insurance and handling of an unre ned mineral resource after that mineral resource was brought to the condition speci ed in Schedule 2 for that mineral resource or any expenditure incurred in respect of transport, insurance and handling to effect the disposal of that mineral resource.
[Sub-s. (3) substituted by s. 99 (1) of Act 17 of 2009.]
(4) (a) If no amount can be quanti ed in respect of a re ned mineral resource transferred as mentioned in subsection (1) (a), gross sales in respect of that transfer is the amount that would have been received or accrued during the year of assessment in respect of that transfer had that mineral resource been transferred in the condition speci ed in Schedule 1 for that mineral resource in terms of a transaction entered into at arm’s length.
(b) If no amount can be quanti ed in respect of an unre ned mineral resource transferred as mentioned in subsection (2) (a), gross sales in respect of that transfer is the amount that would have been received or accrued during the year of assessment in respect of that transfer had that mineral resource been transferred in the condition speci ed in Schedule 2 for that mineral resource in terms of a transaction entered into at arm’s length.
(5) The amount of gross sales in respect of the transfer of any mineral resource must be adjusted if the total amount received is—
(a) more than the amount accrued, by including the
difference between those amounts in the gross sales; or 245
MINERAL AND PETROLEUM RESOURCES ROYALTY ACT