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Income Tax Act 2007

Timing and quantifying rules - Spreading of specific expenditure

EJ 16: Disposal of petroleum mining asset to associate

You could also call this:

“Rules for selling petroleum mining assets to related parties or their representatives”

When you, as a petroleum miner, sell a petroleum mining asset in a given income year, there are special rules if you sell it to certain people. These people include someone who is associated with you, someone who holds the asset for you, or someone who holds the asset for a person associated with you.

In this situation, there’s a limit on how much money you can allocate to that income year under section EJ 15. The most you can allocate is the amount that would be your net income for that year if your only income came from selling the asset.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515136.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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EJ 15: Disposal of petroleum mining asset, or

“Rules for tax deductions when selling a petroleum mining asset”

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EJ 17: Partnership interests and disposal of part of asset, or

“Rules for partnerships and partial asset sales in petroleum and property”

Part E Timing and quantifying rules
Spreading of specific expenditure

EJ 16Disposal of petroleum mining asset to associate

  1. This section applies when, in an income year, a petroleum miner disposes of a petroleum mining asset to—

  2. a person associated with the miner:
    1. a person who holds the asset for the miner:
      1. a person who holds the asset for a person associated with the miner.

        1. The maximum amount that may be allocated under section EJ 15 to the income year is the amount that would be the net income of the petroleum miner in the income year if their only income were from the disposal.

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