Section DT 7 — Income Tax Act 2007: Exploratory well expenditure

DT 7 Exploratory well expenditure When this section applies (1) This section applies when— (a) a petroleum miner incurs exploratory well expenditure; and (b) the miner then uses the exploratory well for the commercial production of petroleum; and (c) the exploratory well expenditure is then treated, under section CT 3 (Exploratory well used for commercial production), as income of the miner. Treatment of expenditure (2) An amount equal to the amount that is treated as income is treated as petroleum development expenditure incurred by the petroleum miner in the income year in which commercial production from the well starts. Defined in this Act: amount , commercial production , exploratory well expenditure , income , income year , petroleum , petroleum development expenditure , petroleum miner , Compare: 2004 No 35 s DT 7