06/02/2009 - 09:23

Miners warned over rehabilitation deals

06/02/2009 - 09:23

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The tax office has warned mining companies to be cautious before entering into arrangements that allow for immediate deduction claims for future obligations to rehabilitate a mine site.

The tax office has warned mining companies to be cautious before entering into arrangements that allow for immediate deduction claims for future obligations to rehabilitate a mine site.

 

The announcement is below:

 

Tax Commissioner Michael D'Ascenzo today issued a taxpayer alert warning mining companies to be cautious before entering into arrangements that allow them to claim an immediate deduction for future obligations to rehabilitate a mine site.

Under these arrangements the mining company pays an offshore entity to agree to carry out the mine site rehabilitation in the future. They may also use intermediaries or related entities, frequently based in a tax haven, to retain control of the funds.

While the mining company seeks an immediate tax deduction for the payment of services, the offshore entity doesn't declare the payment at the time it is received.

"Anyone who has claimed deductions for a future obligation to rehabilitate a mining site should contact us so we can help them sort out their situation," Mr D'Ascenzo said.

"If businesses come to us before we contact them for an audit, they will be entitled to a reduction in any penalties that might apply."

Taxpayers who are unsure of their tax obligations should seek independent advice or contact the Tax Office.

If people are genuinely uncertain they can request a free private ruling from the Tax Office.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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