The method of taking into account assessed losses in calculating the taxable income of
mining companies is of significant importance following the Armgold/Harmony Freegold
case. In this case, the court had to determine the method of calculating a mining
company’s taxable income where at least one of its mines incurred a loss and where nonmining
income was also derived. What constitutes an assessed loss, and the order in
which it should be applied in calculating a mining company’s taxable income, was central
to this case. In this study, the different approaches adopted by the parties to the case in
order to determine whether there is an assessed loss, and the order in which it should be
utilised in calculating taxable income, was analysed and compared to an analysis of the
provisions of the Income Tax Act. In terms of this comparison, the judgment was found to
be in accordance with the current legislation in the Income Tax Act. There is, however, a
lack of updated guidance on matters relating to mining tax as is evident from the different
interpretations of the provisions of the Income Tax Act by the parties to the case. Further
research is therefore recommended in order to provide updated guidance to mining
companies. / Dissertation (MCom)--University of Pretoria, 2013. / am2014 / Taxation / unrestricted
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:up/oai:repository.up.ac.za:2263/41253 |
| Date | January 2013 |
| Creators | Booyse, Mariska |
| Contributors | Pienaar, S.J. (Sarah Johanna), mariska0408@gmail.com |
| Publisher | University of Pretoria |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Mini Dissertation |
| Rights | © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
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