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Income Tax Act 2007

Deductions - Petroleum mining expenditure

DT 15: Persons associated with petroleum miner

You could also call this:

“Rules for people working with petroleum miners who have existing privileges”

If you’re connected to a petroleum miner and they have an existing privilege, this law might apply to you. It applies if you do petroleum mining operations or decommissioning work in the area where the petroleum miner has their privilege. You must be doing this work for payment, but not as a petroleum miner yourself.

If this applies to you, you can get a deduction for money you spend or lose while doing this work. However, you can only deduct up to the amount of income you earn from the work.

This rule overrides the general permission for deductions. This means you can make these deductions even if they wouldn’t normally be allowed under the general rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514078.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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“Tax deductions for farm-in parties in farm-out arrangements”

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DT 16: Decommissioning, or

“Tax deductions for petroleum miners shutting down operations”

Part D Deductions
Petroleum mining expenditure

DT 15Persons associated with petroleum miner

  1. This section applies to a person associated with a petroleum miner when—

  2. the petroleum miner has some or all of an existing privilege; and
    1. the associated person—
      1. undertakes petroleum mining operations or decommissioning in the licence area of the existing privilege; and
        1. does so under an arrangement for reward; and
          1. when doing so is not a petroleum miner in relation to the petroleum mining operations or decommissioning.

          2. The associated person is allowed a deduction for expenditure or loss that they incur in the petroleum mining operations or decommissioning described in subsection (1).

          3. The amount of the deduction is limited to the extent of the amount of income that they derive from the petroleum mining operations or decommissioning.

          4. This section overrides the general permission.

          Compare
          Notes
          • Section DT 15(1)(b)(i): amended, on , by section 55(1) (and see section 55(6) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section DT 15(1)(b)(iii): amended, on , by section 55(2) (and see section 55(6) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section DT 15(2): amended, on , by section 55(3) (and see section 55(6) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section DT 15(3): amended, on , by section 55(4) (and see section 55(6) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section DT 15 list of defined terms decommissioning: inserted, on , by section 55(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).