140‑10 Treatment of pre‑mining profits—g140‑10 Treatment of pre‑mining profits—general rule

#### 140‑10 Treatment of pre‑mining profits—general rule (1) The \*entity may be liable, under this section, to pay MRRT, for the \*MRRT year, in relation to the \*pre‑mining profit. (2) For the purpose only of working out the amount (if any) of that MRRT, the \*MRRT law has effect as if: (a) the \*pre‑mining project interest were, in the \*MRRT year and any earlier MRRT years, a mining project interest that the \*entity has; and (b) the \*pre‑mining profit were a \*mining profit for that mining project interest for the MRRT year; and (c) subsection 70‑20(1) is taken to be satisfied for the purpose of determining whether a \*pre‑mining loss can be applied in working out a \*pre‑mining loss allowance for that mining project interest for the MRRT year or any earlier MRRT year; and (d) no \*mining loss or \*starting base loss arises, or has arisen for that mining project interest for the MRRT year or any earlier MRRT year; and (e) that mining project interest were not \*integrated with any other mining project interest; and (f) the \*exploration right to which the pre‑mining project interest relates were a \*production right; and (g) in a case where the entity is not a miner—the entity were, in the MRRT year and any earlier MRRT years, a miner. > Note 1: The following MRRT allowances could be available for the pre‑mining project interest: (a) royalty allowances; (b) pre‑mining loss allowances (but not for the current year, because the pre‑mining profit precludes a pre‑mining loss for the current MRRT year); (c) transferred pre‑mining loss allowances; (d) transferred mining loss allowances. > Note 2: Paragraph (2)(e) precludes the entity from having any transferred royalty allowances, and also precludes the pre‑mining project interest from being treated as combined with any mining project interest. > Note: Example: An entity holds a pre‑mining project interest that, in the 2015‑16 MRRT year has a pre‑mining profit of $50 million. It also has a royalty credit for the MRRT year of $5 million, based on royalties paid for resources the entity sold. The entity also holds another pre‑mining project interest that, in the MRRT year has a pre‑mining loss of $20 million. > Note: The pre‑mining profit is taken to be a mining profit of $50 million, but the entity has a royalty allowance of $5 million and a transferred pre‑mining loss allowance of $20 million. Under section 10‑5, the entity’s MRRT liability is: > Note:  > Note: However, the amount the entity must pay is reduced to zero by the low profit offset under section 45‑5.