Schedule 4 of Income Tax Act (ITA) 1967 is related to the expenditure wholly and exclusively incurred in searching for, discovering or winning access to deposits of minerals in an eligible area or in testing any such deposits, but excludes expenditure on the acquisition of: (a) the site of the source of the deposits; (b) the site of any works which are likely to be of little or no value when the source is no longer worked; (c) rights in or over any such site; or (d) rights in or over the deposits.

REQUIRED:

Explain the following terms related to the qualifying prospecting expenditure as in Schedule 4 of the ITA 1967:

i- eligible area; and

ii- declaration.