
TY  - JOUR
A1  - Millard, I. R. 
A1  - Imber, D. W. 
T1  - DECISIONS AFFECTED BY SECTIONS 77A, 77AA AND 78 (I) (B) OF THE INCOME TAX ASSESSMENT ACT
JF  - The APPEA Journal
JO  - The APPEA Journal
Y1  - 1968
VL  - 8
IS  - 2
SP  - 39
EP  - 41
KW  - 
UR  - https://doi.org/10.1071/AJ67029 
N2  - IN raising capital funds from their shareholders, it is essential that oil exploration companies in Australia give consideration to the provisions of the Income Tax Act. Certain sections of the Act have been designed to encourage the Australian public to subscribe funds for use in exploration for oil and other minerals by allowing deductions to the shareholders of the exploration companies provided the circumstances suit the provisions of the legislation.The majority of the investing public of Australia are aware that they may claim a deduction for moneys subscribed to an oil or other mineral exploration company provided that company lodges a declaration under Section 77A or Section 77AA of the Income Tax Act. Most are also aware that one third of calls paid to mining companies is an allowable deduction.The speakers propose to explore the areas of decision that management should consider when allowing shareholders a deduction under any of these sections and offer an interpretation of some of the complexities contained in the operations of these sections. These are questions of importance to a company interested not only in direct income tax benefits to its shareholders, but also in conserving maximum deductions for itself having regard to the long term benefits of shareholders.The operation of Sections 77A and 77AA is limited to funds received by companies prior to June 30, 1970. In the past, these sections have been extended for periods of three years and their extension beyond that date is a matter of government policy. 
ER  -

