Commentary

D7.906 Taxable income—Disposal or appropriation of oil

Corporate tax
Corporate tax | Commentary

D7.906 Taxable income—Disposal or appropriation of oil

Corporate tax | Commentary

D7.906 Taxable income—Disposal or appropriation of oil

Arm's length sales

In general terms, on an arm's length oil sale, the actual consideration received is brought in for computing trading income. However, from 1 March 1987 a nomination scheme applies to arm's length sales of crude for PRT purposes1. Under this scheme, oil producers may nominate or identify arm's length contracts for the sale of oil in advance of the date of delivery. Oil sales not covered by a nomination are valued at the higher of sale proceeds and market value for PRT purposes.

For deliveries of oil made on or after July 2006, if under the nomination scheme the market value

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial