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Income Tax Act 2007

Deductions - Petroleum mining expenditure

DT 5: Petroleum development expenditure

You could also call this:

“Tax deductions for petroleum miners' development costs”

If you’re a petroleum miner, you can get money off your taxes for the money you spend on petroleum development. This is called a deduction.

The amount of money you can take off your taxes each year is decided by special rules. These rules are explained in other parts of the law. You can find these rules in section EJ 12, section EJ 12B, or section EJ 13. These sections tell you how to figure out how much of your petroleum development costs you can deduct each year.

There’s an old rule in section DZ 3 that might change how this works for some old petroleum development costs from 1990 to 1991.

This rule about petroleum development costs is part of the general permission to take deductions. It overrides the rule that usually stops you from deducting capital costs. But you still have to follow all the other general rules about deductions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514054.

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Money and consumer rights > Taxes
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“Rules for spending on petroleum mining assets”

Part D Deductions
Petroleum mining expenditure

DT 5Petroleum development expenditure

  1. A petroleum miner is allowed a deduction for petroleum development expenditure incurred by them.

  2. For an income year, an amount of the deduction is allocated to that year, as provided by—

  3. section EJ 12 (Petroleum development expenditure: default allocation rule); or
    1. section EJ 12B (Petroleum development expenditure: reserve depletion method); or
      1. section EJ 13 (Permanently ceasing petroleum mining operations).

        1. This section is overridden by section DZ 3 (Petroleum mining: development expenditure from 1 October 1990 to 15 December 1991).

        2. This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

        Compare
        Notes
        • Section DT 5(1) heading: substituted (with effect on 1 April 2008), on , by section 99(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section DT 5(1): substituted (with effect on 1 April 2008), on , by section 99(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section DT 5(2) heading: substituted (with effect on 1 April 2008), on , by section 99(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section DT 5(2): substituted (with effect on 1 April 2008), on , by section 99(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section DT 5(2)(b): amended, on , by section 52(1) (and see section 52(3) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
        • Section DT 5(2)(c): inserted, on , by section 52(2) (and see section 52(3) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).