The Issues Log

Section / Provision Income Tax Act 2007

Section / Provision Income Tax Act 2004

Date Received

The submission relates to the section DN 3(3) (b) in the ITA 1994. That section allowed a deduction for the "aggregate amount" of exploration and development expenditure incurred "before the end of that year", (less all deductions allowed by the section in all tax years before the current one) .

However in the corresponding sections DU 12(3)(b) in the ITA 2004 and 2007, the section allows a deduction for "all " of the exploration and development expenditure incurred "in the tax year in which the amount is written off", (less all deductions allowed by the section in all tax years before the current one).

Clearly there is a difference between the 1994 provision and that appearing in the 2004 and 2007 acts. It seems to us that this is an unintended consequence, and kindly request that you record this in your 'log'.