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Income Tax Act 2007

Avoidance and non-market transactions - Terminating provisions

GZ 1: Limitation on section GB 20: petroleum and mineral mining arrangements

You could also call this:

“Exceptions to the rule on petroleum and mineral mining arrangements”

Section GB 20 talks about arrangements involving petroleum and mineral mining. However, this rule doesn’t apply in some cases. You don’t need to worry about this rule if:

You sold a petroleum mining asset before 1 July 1992.

You spent money on petroleum exploration before 1 July 1992.

You entered into a farm-out arrangement before 16 December 1991.

A farm-out arrangement is when one company agrees to do work for another company in exchange for an interest in a mining or petroleum project.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517123.

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Part G Avoidance and non-market transactions
Terminating provisions

GZ 1Limitation on section GB 20: petroleum and mineral mining arrangements

  1. Section GB 20 (Arrangements involving petroleum and mineral mining) does not apply to an arrangement if—

  2. the petroleum mining asset was disposed of before 1 July 1992:
    1. the petroleum exploration expenditure was incurred before 1 July 1992:
      1. the farm-out arrangement was entered into before 16 December 1991.

        Compare
        Notes
        • Section GZ 1 heading: amended, on , by section 81(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
        • Section GZ 1: amended, on , by section 81(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
        • Section GZ 1 list of defined terms petroleum exploration expenditure: inserted, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
        • Section GZ 1 list of defined terms petroleum mining expenditure: repealed, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).