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Income Tax Act 2007

Deductions - Petroleum mining expenditure

DT 9: Disposal of petroleum mining asset to associate

You could also call this:

“Rules for selling petroleum mining assets to people connected to you”

This law applies when you’re a petroleum miner and you sell a petroleum mining asset to someone connected to you or someone who holds the asset for you or your associate. In this case, you can’t take the full deduction for the sale in the year you sell it.

You’re not allowed to claim a deduction for the amount that you can’t include in the year you sell the asset. This rule overrides the general permission to claim deductions.

If you want to know more about how this works, you can check section EJ 16(2) and section EJ 15 of the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514062.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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DT 8: Acquisition of certain petroleum mining assets, or

“Rules for deducting costs when buying petroleum mining assets”

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DT 10: Disposal of petroleum mining asset outside association, or

“Selling a petroleum mining asset to someone unrelated after an initial sale to a related party”

Part D Deductions
Petroleum mining expenditure

DT 9Disposal of petroleum mining asset to associate

  1. This section applies when—

  2. a petroleum miner disposes of a petroleum mining asset to—
    1. a person associated with the miner; or
      1. a person who holds the asset for the miner; or
        1. a person who holds the asset for a person associated with the miner; and
        2. section EJ 16(2) (Disposal of petroleum mining asset to associate) prevents the miner from taking the full amount of a deduction allocated under section EJ 15 (Disposal of petroleum mining asset) to the income year in which the miner disposes of the asset.

          1. The miner is denied a deduction for the amount that section EJ 16(2) prevents from being allocated to the income year in which the miner disposes of the asset.

          2. This section overrides the general permission.

          Compare
          Notes
          • Section DT 9(1)(b): amended (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 19(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
          • Section DT 9(2): substituted (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 19(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).