60‑20 When a royalty credit arises60‑20 When a royalty credit arises

#### 60‑20 When a royalty credit arises (1) A liability a miner incurs gives rise to a royalty credit for a mining project interest the miner has to the extent that the liability is to pay, in relation to a \*taxable resource extracted under the authority of the \*production right to which the interest relates: (a) a \*mining royalty; or (b) an amount to another \*entity by way of \*recoupment of a liability the other entity incurs that, because of a previous application of this section: (i) gives rise at any time to a royalty credit for a mining project interest the other entity has that relates to the production right; or (ii) would give rise to such a royalty credit, if the other entity had a mining project interest in relation to the production right. > Note: Sections 60‑30 and 30‑45 set out consequences for the entity that receives a recoupment of an amount giving rise to a royalty credit. (2) The \*royalty credit arises at the time the miner incurs the liability, and relates to the \*MRRT year in which it arises. > Note: If more than one liability satisfying this section is incurred in an MRRT year, more than one royalty credit arises in that year. (3) The \*royalty credit ceases to be a royalty credit if it has been fully applied in working out any of the following: (a) a \*royalty allowance for the mining project interest; (b) \*transferred royalty allowances for other mining project interests.