Amanda Visser
5 minute read
21 Sep 2020
9:39 am

Treasury warns new tax move could cripple mining industry

Amanda Visser

The court held that it qualified for the same capital expenditure allowances available to mining companies.

Image: iStock

A proposed amendment to the Income Tax Act to exclude contract miners from claiming accelerated capital expenditure deductions may have a devastating impact on the entire industry. Several large mining houses, industry bodies and law firms are preparing submissions to National Treasury in an effort to ensure the proposal is not accepted in its current form. Treasury published the proposal in the Draft Taxation Laws Amendment Bill in July, basically saying that tax legislation should be clarified to state that only the holder of a mining right will qualify for the accelerated capital expenditure deductions. The effective date for this...