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DT 12: Damage to assets
or “Tax deductions for repairing damaged petroleum mining assets”
You could also call this:

“Tax implications when selling shares in oil and gas companies”

If you sell shares or trust interests in a controlled petroleum mining entity, you can’t claim a deduction for what you paid for them. This means you can’t reduce your taxable income by the amount you spent on these shares or interests.

When this rule applies, Section 65 of the Tax Administration Act 1994 also comes into play. This section might have additional rules or requirements you need to follow.

This rule is very strict. Even if you would normally be allowed to claim a deduction under other tax rules, this rule overrides those and still stops you from claiming the deduction.

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Next up: DT 14: Farm-out arrangements

or “Tax deductions for farm-in parties in farm-out arrangements”
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Part D Deductions
Petroleum mining expenditure

DT 13Disposal of ownership interests in controlled petroleum mining entities

  1. A person who disposes of shares or trust interests in a controlled petroleum mining entity is denied a deduction for their cost.

  2. Section 65 of the Tax Administration Act 1994 applies when this section applies.

  3. This section overrides the general permission.

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