James Macky, Tim Lynch & Michael Baartz discuss the ATO's finalised view on the income tax treatment of expenditure incurred by an entity that collects and processes seismic data that is then non-exclusively licenced to multiple clients.
The Australian Taxation Office (ATO) has finalised its view on the income tax treatment of expenditure incurred by an entity that collects and processes seismic data that is then non-exclusively licenced to multiple clients.
Its position is that expenditure on such data is:
This was set out in Taxation Ruling 2019/4 (Income tax: capital allowances: expenditure incurred by an entity that collects, processes and provides multi-client seismic data) (TR 2019/4).
The ruling applies to entities referred to as ‘data providers’ who carry on a business of providing seismic data to customers in the mining industry, but who do not carry on mining operations themselves.
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