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New Zealand law explained for everyone

Income Tax Act 2007

Income - Income from petroleum mining

CT 4: Partnership interests and disposal of part of asset

You could also call this:

“Rules for partners selling shares in mining and petroleum assets”

In this part of the law, and in some other sections about selling controlled petroleum mining entities and farm-out arrangements for mining operations, there are two important things you need to know:

First, if you’re a partner in a partnership, you’re treated as owning a share of the partnership’s petroleum permits or other property. The size of your share is based on how much of the partnership’s income you’re entitled to.

Second, when the law talks about selling an asset, it also means selling just a part of an asset. So, if you sell only a portion of something, the same rules apply as if you were selling the whole thing.

These rules help make sure that partners are treated fairly when it comes to owning and selling assets related to petroleum and mining.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512962.

Topics:

Money and consumer rights > Taxes

Business > Industry rules

CT 3: Exploratory well used for commercial production, or

“Taxing expenses when an exploratory oil well becomes commercially productive”

CT 5: Petroleum mining operations outside New Zealand, or

“Rules for petroleum mining outside New Zealand”

Part C Income
Income from petroleum mining

CT 4Partnership interests and disposal of part of asset

In this subpart, and in sections CX 42 (Disposal of ownership interests in controlled petroleum mining entities) and CX 43 (Farm-out arrangements for mining operations), unless the context requires otherwise,—
a partner is treated as having a share or interest in a petroleum permit or other property of a partnership to the extent of their interest in the income of the partnership:
references to the disposal of an asset apply equally to the disposal of part of an asset.

Compare

2004 No 35 s CT 4

Notes

Section CT 4: amended, on 1 April 2014, by section 12 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).