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

More documents

Recommendations

Info

conditions or particular conditions in the case of any such society, scheme or fund as the Board may prescribe: Provided that any sum received by or the value of any benefit obtained by such company, from any approved pension, provident or other society, scheme or fund, in any accounting period of that company shall, for the purposes of subsection (l)(c) of section 9 of this Act, be treated as income of that company of that accounting period; 1996 No. 31 1998 No. 18 (h) all sums, the liability of which was incurred by the company during that period to the Federal Government, or to any State or Local Government Council in Nigeria by way of duty, customs and excise duties, stamp duties, education tax, tax, (other than the tax imposed by this Act) or any other rate, fee or other like charges. Annotation 5 (i) such other deductions as may be prescribed by any rule made under this Act. Incentives for utilization of associated gas. 1998 No. 18 (2) Where a deduction has been allowed to a company under this section in respect of any liability of the company and such liability or any part thereof is waived or released the amount of the deduction or the part thereof corresponding to such part of the liability shall, for the purposes of subsection (1)(c) of section 9 of this Act, be treated as income of the company of its accounting period in which such waiver or release was made or given. 10A – (1) The following incentives shall apply to a company engaged in the utilization of associated gas, that is – (a) investment required to separate crude oil and gas from the reservoir into usable products shall be considered as part of the oil field development; Annotation 6 (b) (c) capital investment on facilities equipment to deliver associated gas in usable form at utilization or designated custody transfer points shall be treated, for tax purposes, as part of the capital investment for oil development; capital allowances, operating expenses and basis of tax assessment shall be subject to the provisions of this Act and the tax incentive under the revised memorandum of understanding. Annotation 7 (2) The incentives specified under subsection (1) of this section shall b bj t t th f ll i diti th t i - 430 -
e subject to the following conditions, that is - (a) (b) (c) (d) condensates extracted and re-injected into the crude oil stream shall be treated as oil but those not re-injected shall be treated under existing tax arrangements; the company shall pay the minimum amount charged by the Minister of Petroleum Resources for any gas flared by the company; the company shall, where practicable, keep the expenses incurred in the utilization of associated gas separate from those incurred from crude oil operation and only expenses not able to be separated shall be allowable against the crude oil income of the company under this Act; expenses identified as incurred exclusively in the utilization of associated gas shall be regarded as gas expenses and be allowable against the gas income and profit to be taxed under the Companies Income Tax Act; Cap.60 1998 No. 18 1999 No. 30 (e) (f) only companies which invest in natural gas liquid extraction facilities to supply gas in usable form to downstream project, including aluminium smelter and methanol, Methyl Tertiary Butyl, Ether and other associated gas utilization projects shall benefit from the incentives; all capital investments relating to gas-to-liquids facilities shall be treated as chargeable capital allowance and recovered against the crude oil income. (g) gas transferred from the natural gas liquid facility to the gas-to-liquid facilities shall be at zero percent tax and zero percent royalty. Annotation 8 Application of incentives to utilization of non associated gas. 1999 No. 30 Deductions not allowed. 10B All incentives granted in respect of investments in associated gas shall be applicable to investment in non-associated gas. 1<strong>1.</strong> (1) Subject to the express provisions of this Act, for the purpose of ascertaining the adjusted profit of any company of any accounting period from its petroleum operations, no deduction shall be allowed in respect of – (a) any disbursements or expenses not being money wholly and - 431 -
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 and 14: (2) For the purposes of subsection
Page 15: (ii) all sums recovered by the comp
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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?