Mineral Royalty Act 1982

(a) a saleable mineral commodity is removed from a production unit without sale, whether on consignment or otherwise; and

(b) section 4A(3)(c) requires the commodity to be valued under this section.

(2) For section 4A, the gross value of the saleable mineral commodity is:

(a) the open market price for the commodity at the time it was removed from the production unit; or

(b) if the royalty payer establishes and substantiates the gross value of the commodity to be another amount – that other amount (the alternative value).

(3) If the saleable mineral commodity is dealt with by the royalty payer in circumstances that involve transfer pricing, any alternative value for subsection (2)(b) must be calculated:

(a) if the royalty payer has been satisfactorily audited by the ATO – using the transfer pricing methodology and the figures accepted by the ATO as mentioned in subsection (4)(c) and (d); or

(b) if an advance pricing arrangement applies in relation to the royalty payer's dealing with the commodity – using the transfer pricing methodology agreed to in that advance pricing arrangement; or

(4) For subsection (3)(a), a royalty payer has been satisfactorily audited by the ATO if:

(a) the ATO has conducted an audit of the royalty payer's affairs; and

(b) the audit included consideration by the ATO of the transfer pricing methodology used by the royalty payer in accounting for the royalty payer's dealing with the commodity for the purposes of the ITAA; and

(c) the ATO has accepted the transfer pricing methodology used by the royalty payer in preparing its income tax return for the relevant year as an appropriate methodology; and

(d) the ATO has accepted the figures used by the royalty payer in the application of that methodology in preparing its income tax return for the relevant year as correct.

advance pricing arrangement means an arrangement between the ATO and a royalty payer (to which there may also be other parties) under which the parties agree on a transfer pricing methodology to be used by the royalty payer in accounting for the royalty payer's dealings with saleable mineral commodities for the purposes of the ITAA.

ATO means the Commonwealth Commissioner of Taxation.

income tax return means an income tax return lodged with the ATO under the ITAA together with any adjustments made, or additional information lodged, after that return was lodged but before the audit mentioned in subsection (4)(a) commenced.

ITAA means either or both of the Income Tax Assessment Act 1936 (Cth) and the Income Tax Assessment Act 1997 (Cth).