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Tax Bill throws up royalty surprises as Davis tax committee mulls broader mining reforms

The Taxation Laws Amendment Bill released on July 8 contains two surprise amendments to mineral royalty taxation on the eve of the Davis Tax Committee’s next mining tax report, which is expected to provide the royalty regime with much needed certainty. The two amendments proposed in the Bill, which has caught the mining industry off guard, could reverse hard-fought symmetry regarding timing of submission of income tax and mineral royalty returns, and places new complexity on royalty estimations.