Section 35, No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018

(1) In a year of assessment in which a person commencesproduction activities under a petroleum licence and for the purposes of allowing a deduction for exploration expenditure incurred during the seven years prior to the commencement, the deduction allowed under paragraph (f) of subsection (1) of section 34 shall be equal to the amount by which relevant deductible expenditure exceeds relevant gross receipts. (2) No amount shall be deductible under paragraph (f) of subsection (1) of section 34 unless the relevant deductible expenditure and relevant gross receipts have been audited and certified as correct by the Commissioner-General. No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 201836 (b) gross positive amounts that enter into the in calculating income from the petroleum operation for the year as stipulated under section 24, including consideration received on the disposal of depreciable, business or other assets; (c) gross positive amounts that enter into the income for the year where the amount is referred to in section 25, including amounts of the type referred to in paragraph (b); and (d) for a surplus in a decommissioning fund, any amount provided for in section 37. (2) Gross receipts of a separate petroleum operation shall not include– (a) interest and other financial gains, including an amount treated as interest income under the Income Tax Act, 2000; or (b) subject to section 36, consideration received for the transfer of a petroleum right. (3) An amount referred to in subsection (1)– (a) shall be determined in accordance with section 95 of the Income Tax Act, 2000; and (b) may be included in the gross receipts of a year of assessment irrespective of whether or not it is actually received during that year. 34. (1) Subject to this section , the deductible expenditure of a separate petroleum operation for a year of assessment shall be the sum of the following gross amounts- (a) gross amounts for the petroleum operation that are directly deducted in calculating chargeable income for the year and where the amounts are referred to in section 25; (b) gross expenditure included during the year in the adjusted cost base of a depreciable or business asset used in the petroleum operation; (c) other gross expenditure that enters into the in calculating income from the petroleum operation for the year; (d) other gross expenditure that enters into the income from the petroleum operation for the year where that amount is referred to in section 25; (e) the amount of income tax payable for the petroleum operation for the year as calculated under section 22; and (f) for the year of commencement of production activities, any amount provided for in section 35. (2) The deductible expenditure of a separate petroleum operation shall not include– Deductible Expenditure