SECTION PART I.- PRELIMINARY 1. Short title 2 ... - Lexadin

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actually delivered to the Nigerian National Petroleum Corporation or sold to any other buyer or customer or disposed of in any other commercial manner; 1996 No. 31 (b) all royalties, the liability for which was incurred by the company during the period in respect of crude oil or of casinghead petroleum spirit won in Nigeria 1999. No. 30 (bb) all sums the liability for which was incurred by the company to the Federal Government of Nigeria during that period by way of customs or excise duty or other like charges levied in respect of machineries, equipment and goods used in the company’s petroleum operation; (c) sums incurred by way of interest upon any money borrowed by such company, where the Board is satisfied that the interest was payable on capital employed in carrying on its petroleum operations; 1999 No. 30. (cc) all sums incurred by way of interest on any inter-company loans obtained under terms prevailing in the open market, that is, the London Inter-Bank Offer Rate, by companies that engage in crude oil production operations in the Nigerian oil industry; (d) (e) any expense incurred for repair of premises, plant, machinery, or fixtures employed for the purpose of carrying on petroleum operations or for the renewal, repair or alteration of any implement, utensils or articles so employed; debts directly incurred to the company and proved to the satisfaction of the Board to have become bad or doubtful in the accounting period for which the adjusted profit is being ascertained notwithstanding that such bad or doubtful debts were due and payable prior to the commencement of that period: Provided that – (i) the deduction to be made in respect of a doubtful debt shall not exceed that portion of the debt which is proved to have become doubtful during that accounting period, nor in respect of any particular debt shall it include any amount deducted under the provisions of this paragraph in determining the adjusted profit of a previous accounting period; - 428 -
(ii) all sums recovered by the company during that accounting period on account of amounts previously deducted in respect of bad or doubtful debts shall, for the purposes of subsection (1)(c) of section 9 of this Act, be treated as income of that company of that period; and (iii) it is proved to the satisfaction of the Board that the debts in respect of which a deduction is claimed were either- (a) included as a profit from the carrying on of petroleum operations in the accounting period in which they were incurred; or (b) advances made in the normal course of carrying on petroleum operations not being advances on account of any item falling within the provisions of section 11 of this Act; 1996 No. 31 (f) (i) any other expenditure, including tangible costs directly incurred in connection with drilling and appraisal of development well, but excluding an expenditure which is qualifying expenditure for the purpose of the Second Schedule to this Act, and any expense or deduction in respect of a liability incurred which is deductible under any other provision of this section; (ii) (iii) any expenditure (tangible or intangible) directly incurred in connection with the drilling of an exploration well and the next two appraisal wells in the same field whether the wells are productive or not ; where a deduction may be given under this section in respect of any such expenditure that expenditure shall not be treated as qualifying drilling expenditure for the purpose of the Second Schedule; (g) any contribution to a pension, provident or other society, scheme or fund which may be approved, with or without retrospective effect, by the Board subject to such general - 429 -
Page 1 and 2: PETROLEUM PROFITS TAX ACT ARRANGEME
Page 3 and 4: 54. Saving for criminal proceedings
Page 5 and 6: this Act; "assessable profits" mean
Page 7 and 8: "Minister" means the Minister charg
Page 9 and 10: (e) the Board may by notice in the
Page 11 and 12: (3) No person appointed under or em
Page 13: (2) For the purposes of subsection
Page 17 and 18: e subject to the following conditio
Page 19 and 20: this Act, in computing the adjusted
Page 21 and 22: 1970 No. 22 business or the transfe
Page 23 and 24: (a) if as respects the trade or bus
Page 25 and 26: Chargeable profits and capital allo
Page 27 and 28: circumstances. mentioned in subsect
Page 29 and 30: Companies not resident in Nigeria 2
Page 31 and 32: Act, the liabilities for which were
Page 33 and 34: mentioned and the like consequences
Page 35 and 36: sickness or other reasonable cause,
Page 37 and 38: (b) the amount of the tax charged b
Page 39 and 40: (7) The onus of proving that the as
Page 41 and 42: estimated to be chargeable for such
Page 43 and 44: elief. (2) On receiving any such ap
Page 45 and 46: schedule, statement or information,
Page 47 and 48: deducted and the nature of the acti
Page 49 and 50: Method of calculating relief to be
Page 51 and 52: or include therein additional power
Page 53 and 54: (c) capital expenditure (hereinafte
Page 55 and 56: Sale of buildings, etc. 1979 No. 24
Page 57 and 58: Provided that a balancing allowance
Page 59 and 60: (2) The provisions of sub-paragraph
Page 61 and 62: up to and including 100 metres of w

SECTION PART I.- PRELIMINARY 1. Short title 2 ... - Lexadin

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