190‑20 The effect of transitional accoun190‑20 The effect of transitional accounting periods on threshold amounts

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#### 190‑20 The effect of transitional accounting periods on threshold amounts (1) For the purpose of working out, in relation to an \*MRRT year that is not a 12 month period (a transitional accounting period), a component used in working out an amount mentioned in the table, the component is adjusted by multiplying it by: ![](image.027.png) ```html <table cellspacing="0" cellpadding="0" style="margin-left:0.25pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:343.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">Threshold amounts</td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">Item</td><td style="width:187.15pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">Amount</td><td style="width:109.85pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">See:</td></tr></thead><tbody><tr><td style="width:24.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">1</td><td style="width:187.15pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">a miner’s group mining profit</td><td style="width:109.85pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">subsection 45‑5(1)</td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">2</td><td style="width:187.15pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">a miner’s group MRRT allowances</td><td style="width:109.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">subsection 45‑10(1)</td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">3</td><td style="width:187.15pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">a miner’s share of group mining profit</td><td style="width:109.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">subsection 45‑10(1)</td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">4</td><td style="width:187.15pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">a miner’s group production of *taxable resources</td><td style="width:109.85pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">paragraph 175‑15(1)(a)</td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">5</td><td style="width:187.15pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">an *entity’s profit</td><td style="width:109.85pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top">section 200‑15</td></tr></tbody></table> ``` > Note: Example: A miner with a mining profit of $45 million for a transitional accounting period of 120 days will not have a low profit offset under section 45‑5 or 45‑10, because that profit is adjusted by multiplying it by 365/120, making the profit $136.88 million. (2) In addition to subsection (1), the amount of a miner’s offset under subsection 45‑10(1) in relation to a transitional accounting period is: ![](image.028.png) where: > unadjusted offset is what would be the amount of the offset under subsection 45‑10(1) if this subsection did not apply. > Note: Example: A miner has a mining profit of $30 million, and MRRT allowances of $5 million, for a transitional accounting period of 120 days. The miner has no connected entities, or affiliates, that are miners. > Note: Under subsection (1), the mining profit is adjusted to $91.25 million, and the MRRT allowances are adjusted to $15.2 million. Under subsection 45‑10(1), the amount of the miner’s offset would be $7.97 million (which would exceed the miner’s MRRT liability of $5.63 million, so MRRT would not be payable). > Note: However, under subsection (2) of this section, that amount is multiplied by 120/365, making the offset $2.62 million (which would reduce the miner’s MRRT liability to $3.01 million). (3) For the purposes of working out whether a mining project interest is covered by subsection 200‑10(3) in relation to a transitional accounting period, the sums of amounts referred to in paragraphs 200‑10(3)(a) and (b) are adjusted by multiplying them by: ![](image.027.png)