Annex 1: Minor changes in the law made by the Act: Change 2: Profits of mines, quarries and other concerns: section 12
This change identifies three consequences of the approach taken to the rewrite of section 55 of ICTA.
Section 55 of ICTA provides that profits arising out of land in the case of certain listed concerns shall be charged to tax under Schedule D Case I. The concerns listed include mines, quarries, railways and canals.
Section 55 of ICTA is rewritten as section 12. It treats the profits and losses of the concern as if they were the profits or losses of a trade. This has three consequences.
This change is adverse to some taxpayers and favourable to others in principle. But it is expected to have no practical effect as it is in line with current practice.