Part 2Trading income

Chapter 2Income taxed as trade profits

Trades and trade profits

C116Oil extraction and related activities

1

If a person carries on any oil-related activities as part of a trade, those activities are treated for income tax purposes as a separate trade, distinct from all other activities carried on by the person as part of the trade.

2

For this purpose the following are oil-related activities—

a

oil extraction activities, and

b

any activities consisting of the acquisition, enjoyment or exploitation of oil rights.

3

“Oil extraction activities” and “oil rights” have the meaning given by section 502(1) of ICTA.