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Income Tax Act 2007

Income - Terminating provisions

CZ 8: Farm-out arrangements for petroleum mining before 16 December 1991

You could also call this:

“Rules for old petroleum mining deals made before 16 December 1991”

If you made a farm-out arrangement for petroleum mining before 16 December 1991, any extra money spent on this arrangement doesn’t count as income for the person who transferred the arrangement. This is called ‘excluded income’.

The terms ‘excess expenditure’, ‘farm-out arrangement’, and ‘transferor’ mean the same things they did in section 214D of the old Income Tax Act 1976. This old act was changed by section 15 of the Income Tax Amendment Act (No 5) 1992.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513516.

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Part C Income
Terminating provisions

CZ 8Farm-out arrangements for petroleum mining before 16 December 1991

  1. Excess expenditure under a farm-out arrangement entered into before 16 December 1991 is excluded income of the transferor.

  2. In subsection (1), excess expenditure, farm-out arrangement, and transferor have the same meanings as in section 214D of the Income Tax Act 1976 immediately before its repeal by section 15 of the Income Tax Amendment Act (No 5) 1992.

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