Income Tax Act 2007

Deductions - Petroleum mining expenditure

DT 6: Expenditure on petroleum mining assets

You could also call this:

“Rules for spending on petroleum mining assets”

When you buy a petroleum mining asset, the money you spend on it is treated as petroleum development expenditure in certain situations. This happens if, at the time you buy the asset:

You are producing petroleum in large amounts on an ongoing basis under the petroleum permit you are buying.

You are producing petroleum in large amounts on an ongoing basis under a petroleum permit that covers the area where you will use a specific type of asset. These assets are described in section CT 7(1)(b) or (c).

You or someone else who is allowed to has applied for a petroleum mining permit for the area, as per section 32(3) of the Crown Minerals Act 1991.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514056.

Topics:
Money and consumer rights > Taxes

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DT 5: Petroleum development expenditure, or

“Tax deductions for petroleum miners' development costs”


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“Rules for tax treatment of money spent on exploratory oil and gas wells”

Part D Deductions
Petroleum mining expenditure

DT 6Expenditure on petroleum mining assets

  1. Expenditure that a person incurs in acquiring a petroleum mining asset is treated as petroleum development expenditure if, at the time the asset is acquired,—

  2. petroleum is produced in commercial quantities on a continuing basis under a petroleum permit that is the one being acquired; or
    1. petroleum is produced in commercial quantities on a continuing basis under a petroleum permit that applies to the permit area in which an asset of the kind described in section CT 7(1)(b) or (c) (Meaning of petroleum mining asset) is to be used; or
      1. an application for a petroleum mining permit for the permit area has been made by a person entitled under section 32(3) of the Crown Minerals Act 1991.
        Compare
        Notes
        • Section DT 6: amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
        • Section DT 6(a): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).