ABSTRACT
In the last decade, there have been a number of transactions involving the transfer2 of an interest in a mining or petroleum right3 (see Box 7.1). Many reported transfers have involved purchasers paying substantial consideration for such rights. This has brought into focus the income tax treatment of gains arising from such transfers.4 The tax treatment of a transfer of mining or petroleum right is complex, and recent transactions have highlighted the inadequacy of the income tax laws of many countries (particularly developing countries) to tax gains arising on the transfer of such rights.5
