previous
next

Depreciation Allowances

19.89. It remains to refer briefly to the question of accelerated depreciation allowances. The petroleum industry is faced with the same situation as was general mining in relation to section 122E, since the immediate write-off facility formerly enjoyed has now been extinguished. The practical difficulties attending this amendment are similar to those noted with regard to general mining in paragraphs 19.67–19.69. As with general mining, the Committee makes no recommendation regarding accelerated depreciation allowances. However, it reiterates the comment made with regard to general mining that consideration might be given to some form of investment allowance or accelerated depreciation to alleviate the practical difficulties that arise as a result of the unique character of this industry.

previous
next