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Income Tax Act 2007

Deductions - Petroleum mining expenditure

DT 7B: Resuming commercial production: petroleum development expenditure

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).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS43333.

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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).