Michael Finucane
Question:125 Mr. Finucane asked the Minister for Finance if he will outline the tax implications for a person who wishes to get involved in a mining activity.
Vol. 406 No. 3
125 Mr. Finucane asked the Minister for Finance if he will outline the tax implications for a person who wishes to get involved in a mining activity.
The tax provisions relating to mining activities are both extensive and very detailed and, accordingly, cannot be comprehensively covered in this reply. However, the following is an outline of the principal features:
(i) Section 245 of the Income Tax Act, 1967, provides for a mine development allowance in respect of certain capital expenditure incurred in connection with a mine including, subject to certain exceptions, the expenditure on development of the mine. The mine must be concerned with any scheduled mineral, mineral compound or mineral substance as defined in section 2 of the Minerals Development Act, 1940.
(ii) The Finance (Taxation of Profits of Certain Mines) Act, 1974, provides for tax allowances in respect of expenditure incurred in exploring for scheduled minerals but only where the exploration is done in conjunction with the working of a mine. Scheduled minerals are defined as meaning those in Schedule 13 to the Income Tax Act, 1967.