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Income Tax Act 2007

Timing and quantifying rules - Spreading of specific expenditure

EJ 17: Partnership interests and disposal of part of asset

You could also call this:

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

When you’re involved in a partnership that deals with petroleum permits or other property, you’re treated as having a share in those things based on how much of the partnership’s income you’re entitled to. This applies to the rules about timing and quantifying in sections EJ 12 to EJ 16, unless the context suggests otherwise.

Also, when these rules talk about selling or getting rid of an asset, they mean the same thing if you’re only selling or getting rid of part of an asset. So, if you sell half of something, the rules work the same way as if you sold all of it.

Remember, these rules are part of the Income Tax Act 2007, which helps figure out how much tax people and businesses need to pay in New Zealand.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515138.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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EJ 16: Disposal of petroleum mining asset to associate, or

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

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EJ 18: Petroleum mining operations outside New Zealand, or

“Rules for petroleum miners working outside New Zealand”

Part E Timing and quantifying rules
Spreading of specific expenditure

EJ 17Partnership interests and disposal of part of asset

  1. In sections EJ 12 to EJ 16, unless the context requires otherwise,—

  2. a partner is treated as having a share or interest in a petroleum permit or other property of a partnership to the extent of their interest in the income of the partnership:
    1. references to the disposal of an asset apply equally to the disposal of part of an asset.

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