Mineral Resource Rent Tax (MRRT)
The Mineral Resources Rent Tax (MRRT) will see the entire coal and iron ore mining industry searching to properly state their assets at 1 May 2010. Whilst miners will require a valuation of all assets, one of the critical elements will be the valuation of the plant, machinery and equipment used in the mining business. There are very few valuers competent to work in this space and even less that meet the requirement to be a registered tax agent. RHAS meet both requirements!
RHAS has offices around Australia and can meet the needs of all miners requiring valuations of their plant, machinery and equipment.
In terms of the appropriate value for the MRRT, miners should be aware that book value on average will understate the value of plant and machinery assets by some large multiples. In many cases mining plant will be written off and in others carried at very low values. The real life of mining plant is significantly longer than the tax lives allowed by the ATO thus almost every item of mining plant and equipment is likely to be understated. If book value is adopted, mining companies will undoubtedly end up paying more tax under the MRRT than is required. As the ATO’s own website states “The starting tax base provides a partial tax shield against the minerals resource rent tax (MRRT) liability by recognising the value as at 1 May, 2010 of investments made up until that date." |