Published on 01 Aug 13
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The value of mining information has direct stamp duty or capital gains tax implications for what are commonly known as “land rich” cases. In the 2013 Budget, it was announced that mining information and goodwill are to be included as part of the value of mining rights for income tax purposes. Whether the states will
mirror these changes in stamp duty legislation remains to be seen. This article therefore focuses on the pre-2013 Budget legislative position and the state stamp duty position. It is pointed out that the appropriate measure of value for mining information in land rich cases should be its market value, as classically defined in Spencer v The Commonwealth. In practice, however, assessing the market value of mining information is technically complex, highly fact-driven, and case-specific.
This article therefore provides a conceptual framework to deal with these challenges, which have not hitherto been subject to adequate discussion.
Wayne is an internationally distinguished
practitioner with over 40 years valuation experience in takeovers
and mergers, litigation including loss assessment, tax, stamp duty
and other regulatory purposes. Wayne is the author of two leading
valuation texts and over 100 published technical papers in various
leading industry journals. Current at 01 July 2015
Click here to expand/collapse more articles by Wayne Lonergan .
Dr Hung Chu
Hung is a Director of Lonergan Edwards & Associates Limited. Dr Hung Chu completed his master degree in Finance and Banking (with Merit among the top 2% of graduates) from the University of Sydney and his doctoral degree in Finance from the University of Technology, Sydney (graduated on Chancellor's List for Exceptional Scholarly Achievement in PhD research). He has 12 years of experience in the provision of valuation services and numerous technical papers published in academic and practitioners' journals. Current at 01 June 2016
Click here to expand/collapse more articles by Hung CHU.