Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
DT 7: Exploratory well expenditure
or “Rules for tax treatment of money spent on exploratory oil and gas wells”
You could also call this:

“Rules for petroleum miners restarting production after a break”

If you are a petroleum miner and you have had some of your petroleum development expenditure treated as income under section CT 5B, this rule applies to you. The amount that was treated as income under section CT 5B is now considered as petroleum development expenditure. This means it’s treated as if you spent that money on developing petroleum in the same income year mentioned in section CT 5B. The way this expenditure is allocated is explained in section DT 5(2).

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: DT 8: Acquisition of certain petroleum mining assets

or “Rules for deducting costs when buying petroleum mining assets”
Next

Part D Deductions
Petroleum mining expenditure

DT 7BResuming commercial production: petroleum development expenditure

  1. This section applies when a petroleum miner has had an amount of petroleum development expenditure treated as income under section CT 5B (Resuming commercial production).

  2. An amount equal to the amount that is treated as income under section CT 5B is treated as petroleum development expenditure—

  3. incurred by the petroleum miner in the income year referred to in section CT 5B; and
    1. allocated as provided by section DT 5(2).

      Notes
      • Section DT 7B: inserted, on , by section 54(1) (and see section 54(2) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).