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Income Tax Act 2007

Deductions - Petroleum mining expenditure

DT 17: Attribution of expenditure

You could also call this:

“How to claim deductions for petroleum permit and asset expenses”

If you spend money to get a petroleum permit, you can claim that money as a deduction. This deduction is linked to the area covered by the permit.

If you spend money to get certain kinds of assets related to petroleum mining, you can also claim that as a deduction. This deduction is linked to both the asset itself and the permit area it relates to.

These rules about linking deductions to permits and assets are used in different parts of the tax law. They’re used in this part of the law, in a section about arrangements involving petroleum and mineral mining, and in a part of the Tax Administration Act 1994.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514083.

Topics:
Money and consumer rights > Taxes
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DT 16: Decommissioning, or

“Tax deductions for petroleum miners shutting down operations”

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DT 18: Replacement permits, or

“Replacement permits are treated the same as original petroleum permits”

Part D Deductions
Petroleum mining expenditure

DT 17Attribution of expenditure

  1. A deduction for expenditure incurred to acquire a petroleum permit is attributable to the permit area of the petroleum permit.

  2. A deduction for expenditure incurred to acquire an asset of the kind described in section CT 7(1)(b) or (c) (Meaning of petroleum mining asset) is attributable to—

  3. the asset; and
    1. the permit area to which the asset relates.

      1. This section applies for the purposes of this subpart, section GB 20 (Arrangements involving petroleum and mineral mining), and section 91 of the Tax Administration Act 1994.

      Compare
      Notes
      • Section DT 17(3) heading: replaced, on , by section 57(1) (and see section 57(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 17(3): amended, on , by section 57(2) (and see section 57(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 17(3): amended, on , by section 40 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).