VIII, s. 24, c. 21, s. 291995, c. 21, s. 231997, c. 25, s. 152001, c. 17, s. 462003, c. 28, s. 62011, c. 24, s. 152013, c. 34, ss. 113, 201, c. 40, s. 322019, c. 29, s. 5
66.21(1)The definitions in this subsection apply in this section.adjusted cumulative foreign resource expenseadjusted cumulative foreign resource expenseof a taxpayer, in respect of a country, at the end of a taxation year means the total of(a)the cumulative foreign resource expense of the taxpayer, in respect of that country, at the end of the year; and(b)the amount, if any, by which(i)the total determined under paragraph 66.7(13.2)(a) in respect of that country and the taxpayer for the yearexceeds(ii)the amount that would, but for paragraph (3)(c), be determined under subsection (3) in respect of that country and the taxpayer for the year. (frais cumulatifs rajustés relatifs à des ressources à l’étranger)cumulative foreign resource expensecumulative foreign resource expenseof a taxpayer, in respect of a country other than Canada at a particular time, means the amount determined by the formula(A + A.1 + B + C + D) – (E + F + G + H + I + J)whereAis the total of all foreign resource expenses, in respect of that country, made or incurred by the taxpayer(a)before the particular time, and(b)at a time (in this definition referred to as a “resident time”)(i)at which the taxpayer was resident in Canada, and(ii)where the taxpayer became resident in Canada before the particular time, that is after the last time (before the particular time) that the taxpayer became resident in Canada;A.1is the total of all foreign resource expenses, in respect of that country, that is the cost to the taxpayer of any of the taxpayer’s foreign resource property in respect of that country that is deemed to have been acquired by the taxpayer under paragraph 128.1(1)(c) at the last time (before the particular time) that the taxpayer became resident in Canada;Bis the total of all amounts included in computing the amount referred to in paragraph 59(3.2)(c.1) in respect of that country, for taxation years that ended before the particular time and at a resident time;Cis the total of all amounts referred to in the description of F or G that are established by the taxpayer to have become a bad debt before the particular time and at a resident time;Dis the total of all specified amounts determined under subsection 66.7(13.2), in respect of the taxpayer and that country, for taxation years that ended before the particular time and at a resident time;Eis the total of all amounts deducted, in computing the taxpayer’s income for a taxation year that ended before the particular time and at a resident time, in respect of the taxpayer’s cumulative foreign resource expense in respect of that country;Fis the total of all amounts each of which is an amount in respect of a foreign resource property, in respect of that country, (in this description referred to as the “particular property”) disposed of by the taxpayer equal to the amount, if any, by which(a)the amount designated under subparagraph 59(1)(b)(ii) by the taxpayer in respect of the portion of the proceeds of that disposition that became receivable before the particular time and at a resident timeexceeds(b)the amount, if any, by which(i)the total of all amounts that would be determined under paragraph 66.7(2.3)(a), immediately before the time (in this paragraph referred to as the “relevant time”) when such proceeds of disposition became receivable, in respect of the taxpayer, that country and an original owner of the particular property (or of any other property acquired by the taxpayer with the particular property in circumstances to which subsection 66.7(2.3) applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time) if(A)amounts that became receivable at or after the relevant time were not taken into account,(B)paragraph 66.7(2.3)(a) were read without reference to “30% of”, and(C)no reduction under subsection 80(8) at or after the relevant time were taken into accountexceeds the total of(ii)all amounts that would be determined under paragraph 66.7(2.3)(a) at the relevant time in respect of the taxpayer, that country and an original owner of the particular property (or of that other property) if(A)amounts that became receivable after the relevant time were not taken into account,(B)paragraph 66.7(2.3)(a) were read without reference to “30% of”, and(C)no reduction under subsection 80(8) at or after the relevant time were taken into account, and(iii)the portion of the amount otherwise determined under this paragraph that was otherwise applied to reduce the amount otherwise determined under this description;Gis the total of all amounts, in respect of that country, each of which is an amount included in the amount determined under this description by reason of subsection 66(12.41) that became receivable by the taxpayer before the particular time and at a resident time;His the total of all amounts each of which is an amount received before the particular time and at a resident time on account of any amount referred to in the description of C;Iis the total of all amounts each of which is an amount by which the cumulative foreign resource expense of the taxpayer, in respect of that country, is required, by reason of subsection 80(8), to be reduced at or before the particular time and at a resident time; andJis the total of all amounts each of which is an amount that is required to be deducted, before the particular time and at a resident time, under paragraph 66.7(13.1)(a) in computing the taxpayer’s cumulative foreign resource expense. (frais cumulatifs relatifs à des ressources à l’étranger)foreign resource expenseforeign resource expenseof a taxpayer, in respect of a country other than Canada, means(a)any drilling or exploration expense, including any general geological or geophysical expense, incurred by the taxpayer on or in respect of exploring or drilling for petroleum or natural gas in that country,(b)any expense incurred by the taxpayer for the purpose of determining the existence, location, extent or quality of a mineral resource in that country, including any expense incurred in the course of(i)prospecting,(ii)carrying out geological, geophysical or geochemical surveys,(iii)drilling by rotary, diamond, percussion or other methods, or(iv)trenching, digging test pits and preliminary sampling,(c)the cost to the taxpayer of any of the taxpayer’s foreign resource property in respect of that country,(d)any annual payment made by the taxpayer for the preservation of a foreign resource property in respect of that country, and(e)subject to section 66.8, the taxpayer’s share of an expense, cost or payment referred to in any of paragraphs (a) to (d) that is made or incurred by a partnership in a fiscal period of the partnership that begins after 2000 if, at the end of that period, the taxpayer was a member of the partnershipbut does not include(f)an expenditure that is the cost, or any part of the cost, to the taxpayer of any depreciable property of a prescribed class,(g)an expenditure incurred at any time after the commencement of production from a foreign resource property of the taxpayer in order to evaluate the feasibility of a method of recovery of petroleum, natural gas or related hydrocarbons from the portion of a natural reservoir to which the foreign resource property relates,(h)an expenditure (other than a drilling expense) incurred at any time after the commencement of production from a foreign resource property of the taxpayer in order to assist in the recovery of petroleum, natural gas or related hydrocarbons from the portion of a natural reservoir to which the foreign resource property relates,(i)an expenditure, incurred at any time, that relates to the injection of any substance to assist in the recovery of petroleum, natural gas or related hydrocarbons from a natural reservoir,(j)an expenditure incurred by the taxpayer, unless the expenditure was made(i)for the acquisition of foreign resource property by the taxpayer, or(ii)for the purpose of(A)enhancing the value of foreign resource property that the taxpayer owned at the time the expenditure was incurred or that the taxpayer had a reasonable expectation of owning after that time, or(B)assisting in evaluating whether a foreign resource property is to be acquired by the taxpayer, or(k)the taxpayer’s share of any cost or expenditure referred to in any of paragraphs (f) to (j) that is incurred by a partnership. (frais relatifs à des ressources à l’étranger)foreign resource incomeforeign resource incomeof a taxpayer for a taxation year, in respect of a country other than Canada, means the total of(a)that part of the taxpayer’s income for the year, determined without reference to subsections (4) and 66(4), that is reasonably attributable to(i)the production of petroleum or natural gas from natural accumulations of petroleum or natural gas in that country or from oil or gas wells in that country, or(ii)the production of minerals from mines in that country;(b)the taxpayer’s income for the year from royalties in respect of a natural accumulation of petroleum or natural gas in that country, an oil or gas well in that country or a mine in that country, determined without reference to subsections (4) and 66(4); and(c)all amounts each of which is an amount, in respect of a foreign resource property in respect of that country that has been disposed of by the taxpayer, equal to the amount, if any, by which(i)the amount included in computing the taxpayer’s income for the year by reason of subsection 59(1) in respect of that dispositionexceeds(ii)the total of all amounts each of which is that portion of an amount deducted under subsection 66.7(2) in computing the taxpayer’s income for the year that(A)can reasonably be considered to be in respect of the foreign resource property, and(B)cannot reasonably be considered to have reduced the amount otherwise determined under paragraph (a) or (b) in respect of the taxpayer for the year. (revenu provenant de ressources à l’étranger)foreign resource lossforeign resource lossof a taxpayer for a taxation year in respect of a country other than Canada means the taxpayer’s loss for the year in respect of the country determined in accordance with the definitionforeign resource incomewith such modifications as the circumstances require. (perte résultant de ressources à l’étranger)global foreign resource limitglobal foreign resource limitof a taxpayer for a taxation year means the amount that is the lesser of(a)the amount, if any, by which(i)the amount determined under subparagraph 66(4)(b)(ii) in respect of the taxpayer for the yearexceeds the total of(ii)the total of all amounts each of which is the maximum amount that the taxpayer would be permitted to deduct, in respect of a country, under subsection (4) in computing the taxpayer’s income for the year if, in its application to the year, subsection (4) were read without reference to paragraph (4)(b), and(iii)the amount deducted for the year under subsection 66(4) in computing the taxpayer’s income for the year; and(b)the amount, if any, by which(i)30% of the total of all amounts each of which is, at the end of the year, the taxpayer’s adjusted cumulative foreign resource expense in respect of a countryexceeds(ii)the total described in subparagraph (a)(ii). (limite globale des frais relatifs à des ressources à l’étranger)Marginal note:Application of subsection 66(15)(2)The definitions in subsection 66(15) apply in this section.Marginal note:Amount to be included in income(3)For the purpose of paragraph 59(3.2)(c.1), the amount referred to in this subsection in respect of a taxpayer for a taxation year is the amount, if any, by which(a)the total of all amounts referred to in the descriptions of E to J in the definitioncumulative foreign resource expensein subsection (1) that are deducted in computing the taxpayer’s cumulative foreign resource expense at the end of the year in respect of a countryexceeds the total of(b)the total of all amounts referred to in the descriptions of A to D in the definitioncumulative foreign resource expensein subsection (1) that are included in computing the taxpayer’s cumulative foreign resource expense at the end of the year in respect of the country, and(c)the total determined under paragraph 66.7(13.2)(a) for the year in respect of the taxpayer and the country.Marginal note:Deduction for cumulative foreign resource expense(4)In computing a taxpayer’s income for a taxation year throughout which the taxpayer is resident in Canada, the taxpayer may deduct the amount claimed by the taxpayer, in respect of a country other than Canada, not exceeding the total of(a)the greater of(i)10% of a particular amount equal to the taxpayer’s adjusted cumulative foreign resource expense in respect of the country at the end of the year, and(ii)the least of(A)if the taxpayer ceased to be resident in Canada immediately after the end of the year, the particular amount,(B)if clause (A) does not apply, 30% of the particular amount,(C)the amount, if any, by which the taxpayer’s foreign resource income for the year in respect of the country exceeds the portion of the amount, deducted under subsection 66(4) in computing the taxpayer’s income for the year, that applies to a source in the country, and(D)the amount, if any, by which(I)the total of all amounts each of which is the taxpayer’s foreign resource income for the year in respect of a countryexceeds the total of(II)all amounts each of which is the taxpayer’s foreign resource loss for the year in respect of a country, and(III)the amount deducted under subsection 66(4) in computing the taxpayer’s income for the year, and(b)the lesser of(i)the amount, if any, by which the particular amount exceeds the amount determined for the year under paragraph (a) in respect of the taxpayer, and(ii)that portion of the taxpayer’s global foreign resource limit for the year that is designated for the year by the taxpayer, in respect of that country and no other country, in prescribed form filed with the Minister with the taxpayer’s return of income for the year.Marginal note:Individual changing residence(5)Where at any time in a taxation year an individual becomes or ceases to be resident in Canada,(a)subsection (4) applies to the individual as if the year were the period or periods in the year throughout which the individual was resident in Canada; and(b)for the purpose of applying this section, subsection 66(13.1) does not apply to the individual for the year.
(a)the cumulative foreign resource expense of the taxpayer, in respect of that country, at the end of the year; and(b)the amount, if any, by which(i)the total determined under paragraph 66.7(13.2)(a) in respect of that country and the taxpayer for the yearexceeds(ii)the amount that would, but for paragraph (3)(c), be determined under subsection (3) in respect of that country and the taxpayer for the year. (frais cumulatifs rajustés relatifs à des ressources à l’étranger)
(i)the total determined under paragraph 66.7(13.2)(a) in respect of that country and the taxpayer for the year
(ii)the amount that would, but for paragraph (3)(c), be determined under subsection (3) in respect of that country and the taxpayer for the year. (frais cumulatifs rajustés relatifs à des ressources à l’étranger)
(a)before the particular time, and(b)at a time (in this definition referred to as a “resident time”)(i)at which the taxpayer was resident in Canada, and(ii)where the taxpayer became resident in Canada before the particular time, that is after the last time (before the particular time) that the taxpayer became resident in Canada;
(i)at which the taxpayer was resident in Canada, and(ii)where the taxpayer became resident in Canada before the particular time, that is after the last time (before the particular time) that the taxpayer became resident in Canada;
(a)the amount designated under subparagraph 59(1)(b)(ii) by the taxpayer in respect of the portion of the proceeds of that disposition that became receivable before the particular time and at a resident time
(b)the amount, if any, by which(i)the total of all amounts that would be determined under paragraph 66.7(2.3)(a), immediately before the time (in this paragraph referred to as the “relevant time”) when such proceeds of disposition became receivable, in respect of the taxpayer, that country and an original owner of the particular property (or of any other property acquired by the taxpayer with the particular property in circumstances to which subsection 66.7(2.3) applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time) if(A)amounts that became receivable at or after the relevant time were not taken into account,(B)paragraph 66.7(2.3)(a) were read without reference to “30% of”, and(C)no reduction under subsection 80(8) at or after the relevant time were taken into accountexceeds the total of(ii)all amounts that would be determined under paragraph 66.7(2.3)(a) at the relevant time in respect of the taxpayer, that country and an original owner of the particular property (or of that other property) if(A)amounts that became receivable after the relevant time were not taken into account,(B)paragraph 66.7(2.3)(a) were read without reference to “30% of”, and(C)no reduction under subsection 80(8) at or after the relevant time were taken into account, and(iii)the portion of the amount otherwise determined under this paragraph that was otherwise applied to reduce the amount otherwise determined under this description;
(i)the total of all amounts that would be determined under paragraph 66.7(2.3)(a), immediately before the time (in this paragraph referred to as the “relevant time”) when such proceeds of disposition became receivable, in respect of the taxpayer, that country and an original owner of the particular property (or of any other property acquired by the taxpayer with the particular property in circumstances to which subsection 66.7(2.3) applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time) if(A)amounts that became receivable at or after the relevant time were not taken into account,(B)paragraph 66.7(2.3)(a) were read without reference to “30% of”, and(C)no reduction under subsection 80(8) at or after the relevant time were taken into account
(A)amounts that became receivable at or after the relevant time were not taken into account,(B)paragraph 66.7(2.3)(a) were read without reference to “30% of”, and(C)no reduction under subsection 80(8) at or after the relevant time were taken into account
(ii)all amounts that would be determined under paragraph 66.7(2.3)(a) at the relevant time in respect of the taxpayer, that country and an original owner of the particular property (or of that other property) if(A)amounts that became receivable after the relevant time were not taken into account,(B)paragraph 66.7(2.3)(a) were read without reference to “30% of”, and(C)no reduction under subsection 80(8) at or after the relevant time were taken into account, and(iii)the portion of the amount otherwise determined under this paragraph that was otherwise applied to reduce the amount otherwise determined under this description;
(A)amounts that became receivable after the relevant time were not taken into account,(B)paragraph 66.7(2.3)(a) were read without reference to “30% of”, and(C)no reduction under subsection 80(8) at or after the relevant time were taken into account, and
(a)any drilling or exploration expense, including any general geological or geophysical expense, incurred by the taxpayer on or in respect of exploring or drilling for petroleum or natural gas in that country,(b)any expense incurred by the taxpayer for the purpose of determining the existence, location, extent or quality of a mineral resource in that country, including any expense incurred in the course of(i)prospecting,(ii)carrying out geological, geophysical or geochemical surveys,(iii)drilling by rotary, diamond, percussion or other methods, or(iv)trenching, digging test pits and preliminary sampling,(c)the cost to the taxpayer of any of the taxpayer’s foreign resource property in respect of that country,(d)any annual payment made by the taxpayer for the preservation of a foreign resource property in respect of that country, and(e)subject to section 66.8, the taxpayer’s share of an expense, cost or payment referred to in any of paragraphs (a) to (d) that is made or incurred by a partnership in a fiscal period of the partnership that begins after 2000 if, at the end of that period, the taxpayer was a member of the partnership
(i)prospecting,(ii)carrying out geological, geophysical or geochemical surveys,(iii)drilling by rotary, diamond, percussion or other methods, or(iv)trenching, digging test pits and preliminary sampling,
(f)an expenditure that is the cost, or any part of the cost, to the taxpayer of any depreciable property of a prescribed class,(g)an expenditure incurred at any time after the commencement of production from a foreign resource property of the taxpayer in order to evaluate the feasibility of a method of recovery of petroleum, natural gas or related hydrocarbons from the portion of a natural reservoir to which the foreign resource property relates,(h)an expenditure (other than a drilling expense) incurred at any time after the commencement of production from a foreign resource property of the taxpayer in order to assist in the recovery of petroleum, natural gas or related hydrocarbons from the portion of a natural reservoir to which the foreign resource property relates,(i)an expenditure, incurred at any time, that relates to the injection of any substance to assist in the recovery of petroleum, natural gas or related hydrocarbons from a natural reservoir,(j)an expenditure incurred by the taxpayer, unless the expenditure was made(i)for the acquisition of foreign resource property by the taxpayer, or(ii)for the purpose of(A)enhancing the value of foreign resource property that the taxpayer owned at the time the expenditure was incurred or that the taxpayer had a reasonable expectation of owning after that time, or(B)assisting in evaluating whether a foreign resource property is to be acquired by the taxpayer, or(k)the taxpayer’s share of any cost or expenditure referred to in any of paragraphs (f) to (j) that is incurred by a partnership. (frais relatifs à des ressources à l’étranger)
(i)for the acquisition of foreign resource property by the taxpayer, or(ii)for the purpose of(A)enhancing the value of foreign resource property that the taxpayer owned at the time the expenditure was incurred or that the taxpayer had a reasonable expectation of owning after that time, or(B)assisting in evaluating whether a foreign resource property is to be acquired by the taxpayer, or
(A)enhancing the value of foreign resource property that the taxpayer owned at the time the expenditure was incurred or that the taxpayer had a reasonable expectation of owning after that time, or(B)assisting in evaluating whether a foreign resource property is to be acquired by the taxpayer, or
(a)that part of the taxpayer’s income for the year, determined without reference to subsections (4) and 66(4), that is reasonably attributable to(i)the production of petroleum or natural gas from natural accumulations of petroleum or natural gas in that country or from oil or gas wells in that country, or(ii)the production of minerals from mines in that country;(b)the taxpayer’s income for the year from royalties in respect of a natural accumulation of petroleum or natural gas in that country, an oil or gas well in that country or a mine in that country, determined without reference to subsections (4) and 66(4); and(c)all amounts each of which is an amount, in respect of a foreign resource property in respect of that country that has been disposed of by the taxpayer, equal to the amount, if any, by which(i)the amount included in computing the taxpayer’s income for the year by reason of subsection 59(1) in respect of that dispositionexceeds(ii)the total of all amounts each of which is that portion of an amount deducted under subsection 66.7(2) in computing the taxpayer’s income for the year that(A)can reasonably be considered to be in respect of the foreign resource property, and(B)cannot reasonably be considered to have reduced the amount otherwise determined under paragraph (a) or (b) in respect of the taxpayer for the year. (revenu provenant de ressources à l’étranger)
(i)the production of petroleum or natural gas from natural accumulations of petroleum or natural gas in that country or from oil or gas wells in that country, or(ii)the production of minerals from mines in that country;
(i)the amount included in computing the taxpayer’s income for the year by reason of subsection 59(1) in respect of that disposition
(ii)the total of all amounts each of which is that portion of an amount deducted under subsection 66.7(2) in computing the taxpayer’s income for the year that(A)can reasonably be considered to be in respect of the foreign resource property, and(B)cannot reasonably be considered to have reduced the amount otherwise determined under paragraph (a) or (b) in respect of the taxpayer for the year. (revenu provenant de ressources à l’étranger)
(A)can reasonably be considered to be in respect of the foreign resource property, and(B)cannot reasonably be considered to have reduced the amount otherwise determined under paragraph (a) or (b) in respect of the taxpayer for the year. (revenu provenant de ressources à l’étranger)
(a)the amount, if any, by which(i)the amount determined under subparagraph 66(4)(b)(ii) in respect of the taxpayer for the yearexceeds the total of(ii)the total of all amounts each of which is the maximum amount that the taxpayer would be permitted to deduct, in respect of a country, under subsection (4) in computing the taxpayer’s income for the year if, in its application to the year, subsection (4) were read without reference to paragraph (4)(b), and(iii)the amount deducted for the year under subsection 66(4) in computing the taxpayer’s income for the year; and(b)the amount, if any, by which(i)30% of the total of all amounts each of which is, at the end of the year, the taxpayer’s adjusted cumulative foreign resource expense in respect of a countryexceeds(ii)the total described in subparagraph (a)(ii). (limite globale des frais relatifs à des ressources à l’étranger)
(i)the amount determined under subparagraph 66(4)(b)(ii) in respect of the taxpayer for the year
(ii)the total of all amounts each of which is the maximum amount that the taxpayer would be permitted to deduct, in respect of a country, under subsection (4) in computing the taxpayer’s income for the year if, in its application to the year, subsection (4) were read without reference to paragraph (4)(b), and(iii)the amount deducted for the year under subsection 66(4) in computing the taxpayer’s income for the year; and
(i)30% of the total of all amounts each of which is, at the end of the year, the taxpayer’s adjusted cumulative foreign resource expense in respect of a country
(ii)the total described in subparagraph (a)(ii). (limite globale des frais relatifs à des ressources à l’étranger)
(a)the total of all amounts referred to in the descriptions of E to J in the definitioncumulative foreign resource expensein subsection (1) that are deducted in computing the taxpayer’s cumulative foreign resource expense at the end of the year in respect of a country
(b)the total of all amounts referred to in the descriptions of A to D in the definitioncumulative foreign resource expensein subsection (1) that are included in computing the taxpayer’s cumulative foreign resource expense at the end of the year in respect of the country, and(c)the total determined under paragraph 66.7(13.2)(a) for the year in respect of the taxpayer and the country.
(a)the greater of(i)10% of a particular amount equal to the taxpayer’s adjusted cumulative foreign resource expense in respect of the country at the end of the year, and(ii)the least of(A)if the taxpayer ceased to be resident in Canada immediately after the end of the year, the particular amount,(B)if clause (A) does not apply, 30% of the particular amount,(C)the amount, if any, by which the taxpayer’s foreign resource income for the year in respect of the country exceeds the portion of the amount, deducted under subsection 66(4) in computing the taxpayer’s income for the year, that applies to a source in the country, and(D)the amount, if any, by which(I)the total of all amounts each of which is the taxpayer’s foreign resource income for the year in respect of a countryexceeds the total of(II)all amounts each of which is the taxpayer’s foreign resource loss for the year in respect of a country, and(III)the amount deducted under subsection 66(4) in computing the taxpayer’s income for the year, and(b)the lesser of(i)the amount, if any, by which the particular amount exceeds the amount determined for the year under paragraph (a) in respect of the taxpayer, and(ii)that portion of the taxpayer’s global foreign resource limit for the year that is designated for the year by the taxpayer, in respect of that country and no other country, in prescribed form filed with the Minister with the taxpayer’s return of income for the year.
(i)10% of a particular amount equal to the taxpayer’s adjusted cumulative foreign resource expense in respect of the country at the end of the year, and(ii)the least of(A)if the taxpayer ceased to be resident in Canada immediately after the end of the year, the particular amount,(B)if clause (A) does not apply, 30% of the particular amount,(C)the amount, if any, by which the taxpayer’s foreign resource income for the year in respect of the country exceeds the portion of the amount, deducted under subsection 66(4) in computing the taxpayer’s income for the year, that applies to a source in the country, and(D)the amount, if any, by which(I)the total of all amounts each of which is the taxpayer’s foreign resource income for the year in respect of a countryexceeds the total of(II)all amounts each of which is the taxpayer’s foreign resource loss for the year in respect of a country, and(III)the amount deducted under subsection 66(4) in computing the taxpayer’s income for the year, and
(A)if the taxpayer ceased to be resident in Canada immediately after the end of the year, the particular amount,(B)if clause (A) does not apply, 30% of the particular amount,(C)the amount, if any, by which the taxpayer’s foreign resource income for the year in respect of the country exceeds the portion of the amount, deducted under subsection 66(4) in computing the taxpayer’s income for the year, that applies to a source in the country, and(D)the amount, if any, by which(I)the total of all amounts each of which is the taxpayer’s foreign resource income for the year in respect of a countryexceeds the total of(II)all amounts each of which is the taxpayer’s foreign resource loss for the year in respect of a country, and(III)the amount deducted under subsection 66(4) in computing the taxpayer’s income for the year, and
(I)the total of all amounts each of which is the taxpayer’s foreign resource income for the year in respect of a country
(II)all amounts each of which is the taxpayer’s foreign resource loss for the year in respect of a country, and(III)the amount deducted under subsection 66(4) in computing the taxpayer’s income for the year, and
(i)the amount, if any, by which the particular amount exceeds the amount determined for the year under paragraph (a) in respect of the taxpayer, and(ii)that portion of the taxpayer’s global foreign resource limit for the year that is designated for the year by the taxpayer, in respect of that country and no other country, in prescribed form filed with the Minister with the taxpayer’s return of income for the year.
(a)subsection (4) applies to the individual as if the year were the period or periods in the year throughout which the individual was resident in Canada; and(b)for the purpose of applying this section, subsection 66(13.1) does not apply to the individual for the year.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2001, c. 17, s. 472013, c. 34, s. 202
66.3(1)Any shares of the capital stock of a corporation or any interest in any such shares or right thereto acquired by a taxpayer under circumstances described in paragraph (i) of the definitionCanadian exploration expensein subsection 66.1(6), paragraph (g) of the definitionCanadian development expensein subsection 66.2(5) or paragraph (c) of the definitionCanadian oil and gas property expensein subsection 66.4(5)(a)shall, if acquired before November 13, 1981, be deemed(i)not to be a capital property of the taxpayer,(ii)subject to subsection 142.6(3), to be inventory of the taxpayer, and(iii)to have been acquired by the taxpayer at a cost to the taxpayer of nil; and(b)shall, if acquired after November 12, 1981, be deemed to have been acquired by the taxpayer at a cost to the taxpayer of nil.Marginal note:Deductions from paid-up capital(2)If, at any time after May 23, 1985, a corporation has issued a share of its capital stock under circumstances described in paragraph (i) of the definitionCanadian exploration expensein subsection 66.1(6), paragraph (g) of the definitionCanadian development expensein subsection 66.2(5) or paragraph (c) of the definitionCanadian oil and gas property expensein subsection 66.4(5) or has issued a share of its capital stock on the exercise of an interest in or right to — or, for civil law, a right in or to — such a share granted under circumstances described in any of those paragraphs, in computing, at any particular time after that time, the paid-up capital in respect of the class of shares of the capital stock of the corporation that included that share(a)there shall be deducted the amount, if any, by which(i)the increase as a result of the issue of the share in the paid-up capital, determined without reference to this subsection as it applies to the share, in respect of all of the shares of that classexceeds(ii)the amount, if any, by which(A)the total amount of consideration received by the corporation in respect of the share, including any consideration for the interest or right in respect of the shareexceeds(B)50% of the amount of the expense referred to in paragraph (i) of the definitionCanadian exploration expensein subsection 66.1(6), paragraph (g) of the definitionCanadian development expensein subsection 66.2(5) or paragraph (c) of the definitionCanadian oil and gas property expensein subsection 66.4(5) that was incurred by a taxpayer who acquired the share or the interest or right on the exercise of which the share was issued, as the case may be, pursuant to an agreement with the corporation under which the taxpayer incurred the expense solely as consideration for the share, interest or right, as the case may be; and(b)there shall be added an amount equal to the lesser of(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular timeexceeds(B)the total that would be determined under clause (A) if this Act were read without reference to paragraph 66.3(2)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 66.3(2)(a) to be deducted in computing the paid-up capital in respect of that class of shares after May 22, 1985 and before the particular time.Marginal note:Cost of flow-through shares(3)Any flow-through share (within the meaning assigned by subsection 66(15)) of a corporation acquired by a person who was a party to the agreement pursuant to which it was issued shall be deemed to have been acquired by the person at a cost to the person of nil.Marginal note:Paid-up capital(4)Where, at any time after February, 1986, a corporation has issued a flow-through share (within the meaning assigned by subsection 66(15)), in computing, at any particular time after that time, the paid-up capital in respect of the class of shares of the capital stock of the corporation that included that share(a)there shall be deducted the amount, if any, by which(i)the increase as a result of the issue of the share in the paid-up capital, determined without reference to this subsection as it applies to the share, in respect of all of the shares of that classexceeds(ii)the amount, if any, by which(A)the total amount of consideration received by the corporation in respect of the shareexceeds(B)50% of the total of the expenses that were renounced by the corporation under subsection 66(12.6), (12.601), (12.62) or (12.64) in respect of the share; and(b)there shall be added an amount equal to the lesser of(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of that class paid by the corporation after February, 1986 and before the particular timeexceeds(B)the total that would be determined under clause (A) if this Act were read without reference to paragraph 66.3(4)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 66.3(4)(a) to be deducted in computing the paid-up capital in respect of that class of shares after February, 1986 and before the particular time.
(a)shall, if acquired before November 13, 1981, be deemed(i)not to be a capital property of the taxpayer,(ii)subject to subsection 142.6(3), to be inventory of the taxpayer, and(iii)to have been acquired by the taxpayer at a cost to the taxpayer of nil; and(b)shall, if acquired after November 12, 1981, be deemed to have been acquired by the taxpayer at a cost to the taxpayer of nil.
(i)not to be a capital property of the taxpayer,(ii)subject to subsection 142.6(3), to be inventory of the taxpayer, and(iii)to have been acquired by the taxpayer at a cost to the taxpayer of nil; and
(a)there shall be deducted the amount, if any, by which(i)the increase as a result of the issue of the share in the paid-up capital, determined without reference to this subsection as it applies to the share, in respect of all of the shares of that classexceeds(ii)the amount, if any, by which(A)the total amount of consideration received by the corporation in respect of the share, including any consideration for the interest or right in respect of the shareexceeds(B)50% of the amount of the expense referred to in paragraph (i) of the definitionCanadian exploration expensein subsection 66.1(6), paragraph (g) of the definitionCanadian development expensein subsection 66.2(5) or paragraph (c) of the definitionCanadian oil and gas property expensein subsection 66.4(5) that was incurred by a taxpayer who acquired the share or the interest or right on the exercise of which the share was issued, as the case may be, pursuant to an agreement with the corporation under which the taxpayer incurred the expense solely as consideration for the share, interest or right, as the case may be; and(b)there shall be added an amount equal to the lesser of(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular timeexceeds(B)the total that would be determined under clause (A) if this Act were read without reference to paragraph 66.3(2)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 66.3(2)(a) to be deducted in computing the paid-up capital in respect of that class of shares after May 22, 1985 and before the particular time.
(i)the increase as a result of the issue of the share in the paid-up capital, determined without reference to this subsection as it applies to the share, in respect of all of the shares of that class
(ii)the amount, if any, by which(A)the total amount of consideration received by the corporation in respect of the share, including any consideration for the interest or right in respect of the shareexceeds(B)50% of the amount of the expense referred to in paragraph (i) of the definitionCanadian exploration expensein subsection 66.1(6), paragraph (g) of the definitionCanadian development expensein subsection 66.2(5) or paragraph (c) of the definitionCanadian oil and gas property expensein subsection 66.4(5) that was incurred by a taxpayer who acquired the share or the interest or right on the exercise of which the share was issued, as the case may be, pursuant to an agreement with the corporation under which the taxpayer incurred the expense solely as consideration for the share, interest or right, as the case may be; and
(A)the total amount of consideration received by the corporation in respect of the share, including any consideration for the interest or right in respect of the share
(B)50% of the amount of the expense referred to in paragraph (i) of the definitionCanadian exploration expensein subsection 66.1(6), paragraph (g) of the definitionCanadian development expensein subsection 66.2(5) or paragraph (c) of the definitionCanadian oil and gas property expensein subsection 66.4(5) that was incurred by a taxpayer who acquired the share or the interest or right on the exercise of which the share was issued, as the case may be, pursuant to an agreement with the corporation under which the taxpayer incurred the expense solely as consideration for the share, interest or right, as the case may be; and
(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular timeexceeds(B)the total that would be determined under clause (A) if this Act were read without reference to paragraph 66.3(2)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 66.3(2)(a) to be deducted in computing the paid-up capital in respect of that class of shares after May 22, 1985 and before the particular time.
(A)the total of all amounts each of which is an amount deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of that class paid by the corporation after May 23, 1985 and before the particular time
(B)the total that would be determined under clause (A) if this Act were read without reference to paragraph 66.3(2)(a), and
(a)there shall be deducted the amount, if any, by which(i)the increase as a result of the issue of the share in the paid-up capital, determined without reference to this subsection as it applies to the share, in respect of all of the shares of that classexceeds(ii)the amount, if any, by which(A)the total amount of consideration received by the corporation in respect of the shareexceeds(B)50% of the total of the expenses that were renounced by the corporation under subsection 66(12.6), (12.601), (12.62) or (12.64) in respect of the share; and(b)there shall be added an amount equal to the lesser of(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of that class paid by the corporation after February, 1986 and before the particular timeexceeds(B)the total that would be determined under clause (A) if this Act were read without reference to paragraph 66.3(4)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 66.3(4)(a) to be deducted in computing the paid-up capital in respect of that class of shares after February, 1986 and before the particular time.
(i)the increase as a result of the issue of the share in the paid-up capital, determined without reference to this subsection as it applies to the share, in respect of all of the shares of that class
(ii)the amount, if any, by which(A)the total amount of consideration received by the corporation in respect of the shareexceeds(B)50% of the total of the expenses that were renounced by the corporation under subsection 66(12.6), (12.601), (12.62) or (12.64) in respect of the share; and
(A)the total amount of consideration received by the corporation in respect of the share
(B)50% of the total of the expenses that were renounced by the corporation under subsection 66(12.6), (12.601), (12.62) or (12.64) in respect of the share; and
(i)the amount, if any, by which(A)the total of all amounts each of which is an amount deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of that class paid by the corporation after February, 1986 and before the particular timeexceeds(B)the total that would be determined under clause (A) if this Act were read without reference to paragraph 66.3(4)(a), and(ii)the total of all amounts each of which is an amount required by paragraph 66.3(4)(a) to be deducted in computing the paid-up capital in respect of that class of shares after February, 1986 and before the particular time.
(A)the total of all amounts each of which is an amount deemed by subsection 84(3), (4) or (4.1) to be a dividend on shares of that class paid by the corporation after February, 1986 and before the particular time
(B)the total that would be determined under clause (A) if this Act were read without reference to paragraph 66.3(4)(a), and
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 66.31994, c. 8, s. 71995, c. 21, s. 512013, c. 34, s. 114
66.4(1)For the purposes of the description of B in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5) and the description of L in the definitioncumulative Canadian development expensein subsection 66.2(5) and for the purpose of subparagraph 64(1.2)(a)(ii) of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, as it applies to dispositions occurring before November 13, 1981, the amount determined under this subsection in respect of a taxpayer for a taxation year is the amount, if any, by which(a)the total of all amounts referred to in the descriptions of E to J in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5) that are deducted in computing the taxpayer’s cumulative Canadian oil and gas property expense at the end of the yearexceeds the total of(b)all amounts referred to in the descriptions of A to D.1 in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5) that are included in computing the taxpayer’s cumulative Canadian oil and gas property expense at the end of the year, and(c)the total determined under subparagraph 66.7(12.1)(c)(i) in respect of the taxpayer for the year.Marginal note:Deduction for cumulative Canadian oil and gas property expense(2)A taxpayer may deduct, in computing the taxpayer’s income for a taxation year, such amount as the taxpayer may claim not exceeding the total of(a)the lesser of(i)the total of(A)the taxpayer’s cumulative Canadian oil and gas property expense at the end of the year, and(B)the amount, if any, by which(I)the total determined under subparagraph 66.7(12.1)(c)(i) in respect of the taxpayer for the yearexceeds(II)the amount that would, but for paragraph 66.4(1)(c), be determined under subsection 66.4(1) in respect of the taxpayer for the year, and(ii)the amount, if any, by which the total of all amounts each of which is(A)an amount included in the taxpayer’s income for the year by virtue of a disposition in the year of inventory described in section 66.3 that was a share or any interest in or right to — or, for civil law, any right in or to — a share acquired by the taxpayer under circumstances described in paragraph (c) of the definitionCanadian oil and gas property expensein subsection (5), or(B)an amount included by virtue of paragraph 12(1)(e) in computing the taxpayer’s income for the year to the extent that it relates to inventory described in clause (A)exceeds(C)the total of all amounts deducted as a reserve by virtue of paragraph 20(1)(n) in computing the taxpayer’s income for the year to the extent that the reserve relates to inventory described in clause (A);(b)10% of the amount, if any, by which the amount determined under subparagraph 66.4(2)(a)(i) exceeds the amount determined under subparagraph 66.4(2)(a)(ii); and(c)the amount determined by the formulaA(B − C)whereAis(i)for taxation years that end before 2024, 5%,(ii)for taxation years that begin before 2024 and end after 2023, the amount determined by the formula0.05(I/J) + 0.025(K/J)whereIis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer before 2024 and in the taxation year,Jis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer in the taxation year, andKis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer after 2023 and in the taxation year, and(iii)for taxation years that begin after 2023, 2.5%,Bis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer in the taxation year, andCis the amount determined by the formula(D − E) − (F − G − H)whereDis the total of the amounts determined for E to J in the definitioncumulative Canadian oil and gas property expensein subsection (5) at the end of the taxation year,Eis the total of the amounts determined for E to J in the definitioncumulative Canadian oil and gas property expensein subsection (5) at the beginning of the taxation year,Fis the total of the amounts determined for A to D.1 in the definitioncumulative Canadian oil and gas property expensein subsection (5) at the end of the taxation year,Gis the total of the amounts determined for A to D.1 in the definitioncumulative Canadian oil and gas property expensein subsection (5) at the end of the preceding taxation year, andHis the amount determined for B.Marginal note:Definitions(5)In this section,accelerated Canadian oil and gas property expenseaccelerated Canadian oil and gas property expense, of a taxpayer, means any cost or expense incurred by the taxpayer during a taxation year, if the cost or expense(a)qualifies as a Canadian oil and gas property expense at the time it is incurred, other than(i)an expense in respect of which the taxpayer is a successor, within the meaning of subsection 66.7(5), and(ii)a cost in respect of a Canadian resource property acquired by the taxpayer, or a partnership in which the taxpayer is a member, from a person or partnership with which the taxpayer does not deal at arm’s length, and(b)is incurred after November 20, 2018 and before 2028; (frais à l’égard de biens canadiens relatifs au pétrole et au gaz accélérés)Canadian oil and gas property expenseCanadian oil and gas property expenseof a taxpayer means any cost or expense incurred after December 11, 1979 that is(a)the cost to the taxpayer of, including any payment for the preservation of a taxpayer’s rights in respect of, any property described in paragraph (a), (c) or (d) of the definitionCanadian resource propertyin subsection 66(15) or any right to or interest in — or, for civil law, any right in or to — the property (other than a right or an interest that the taxpayer has by reason of being a beneficiary under a trust or a member of a partnership), or an amount paid to Her Majesty in right of the Province of Saskatchewan as a net royalty payment pursuant to a net royalty petroleum and natural gas lease that was in effect on March 31, 1977 to the extent that it can reasonably be regarded as a cost of acquiring the lease,(b)subject to section 66.8, the taxpayer’s share of any expense referred to in paragraph (a) incurred by a partnership in a fiscal period thereof at the end of which the taxpayer was a member of the partnership, unless the taxpayer elects in respect of the share in prescribed form and manner on or before the day that is 6 months after the taxpayer’s taxation year in which that period ends, or(c)any cost or expense referred to in paragraph (a) incurred by the taxpayer pursuant to an agreement in writing with a corporation, entered into before 1987, under which the taxpayer incurred the cost or expense solely as consideration for shares, other than prescribed shares, of the capital stock of the corporation issued to the taxpayer or any interest in or right to — or, for civil law, any right in or to — such shares,but for greater certainty, shall not include(d)any consideration given by the taxpayer for any share or any interest therein or right thereto, except as provided by paragraph (c), or(e)any expense described in paragraph (c) incurred by any other taxpayer to the extent that the expense was,(i)by virtue of that paragraph, a Canadian oil and gas property expense of that other taxpayer,(ii)by virtue of paragraph (i) of the definitionCanadian exploration expensein subsection 66.1(6), a Canadian exploration expense of that other taxpayer, or(iii)by virtue of paragraph (g) of the definitionCanadian development expensein subsection 66.2(5), a Canadian development expense of that other taxpayer,but any amount of assistance that a taxpayer has received or is entitled to receive in respect of or related to the taxpayer’s Canadian oil and gas property expense shall not reduce the amount of any of the expenses described in any of paragraphs (a) to (c); (frais à l’égard de biens canadiens relatifs au pétrole et au gaz)cumulative Canadian oil and gas property expensecumulative Canadian oil and gas property expenseof a taxpayer at any time in a taxation year means the amount determined by the formula(A + B + C + D + D.1) - (E + F + G + H + I + I.1 + J)whereAis the total of all Canadian oil and gas property expenses made or incurred by the taxpayer before that time,Bis the total of all amounts determined under subsection 66.4(1) in respect of the taxpayer for taxation years ending before that time,Cis the total of all amounts referred to in the description of F or G that are established by the taxpayer to have become bad debts before that time,Dis such part, if any, of the amount determined for I as has been repaid before that time by the taxpayer pursuant to a legal obligation to repay all or any part of that amount,D.1is the total of all specified amounts, determined under paragraph 66.7(12.1)(c) in respect of the taxpayer for taxation years ending before that time,Eis the total of all amounts deducted in computing the taxpayer’s income for a taxation year ending before that time in respect of the taxpayer’s cumulative Canadian oil and gas property expense,Fis the total of all amounts each of which is an amount in respect of property described in paragraph (a), (c) or (d) of the definitionCanadian resource propertyin subsection 66(15) or any right to or interest in — or, for civil law, any right in or to — such a property, other than such a right or interest that the taxpayer has by reason of being a beneficiary under a trust or a member of a partnership, (in this description referred to as “the particular property”) disposed of by the taxpayer before that time equal to the amount, if any, by which(a)the amount, if any, by which the proceeds of disposition in respect of the particular property that became receivable by the taxpayer before that time exceed any outlays or expenses made or incurred by the taxpayer before that time for the purpose of making the disposition and that were not otherwise deductible for the purposes of this Partexceeds the total of(b)the amount, if any, by which(i)the total of all amounts that would be determined under paragraph 66.7(5)(a), immediately before the time (in this paragraph and paragraph (c) referred to as the “relevant time”) when such proceeds of disposition became receivable, in respect of the taxpayer and an original owner of the particular property (or of any other property acquired by the taxpayer with the particular property in circumstances in which subsection 66.7(5) applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time) if(A)amounts that became receivable at or after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable before the relevant time were made before the relevant time,(C)paragraph 66.7(5)(a) were read without reference to “10% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into accountexceeds the total of(ii)all amounts that would be determined under paragraph 66.7(5)(a) at the relevant time in respect of the taxpayer and an original owner of the particular property (or of that other property described in subparagraph (i)) if(A)amounts that became receivable after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable at or before the relevant time were made before the relevant time,(C)paragraph 66.7(5)(a) were read without reference to “10% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into account, and(iii)such portion of the amount determined under this paragraph as was otherwise applied to reduce the amount otherwise determined under this description, and(c)the amount, if any, by which(i)the total of all amounts that would be determined under paragraph 66.7(4)(a), immediately before the relevant time, in respect of the taxpayer and an original owner of the particular property (or of any other property acquired by the taxpayer with the particular property in circumstances in which subsection 66.7(4) applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time) if(A)amounts that became receivable at or after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable before the relevant time were made before the relevant time,(C)paragraph 66.7(4)(a) were read without reference to “30% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into accountexceeds the total of(ii)all amounts that would be determined under paragraph 66.7(4)(a) at the relevant time in respect of the taxpayer and an original owner of the particular property (or of that other property described in subparagraph (i)) if(A)amounts that became receivable after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable at or before the relevant time were made before the relevant time,(C)paragraph 66.7(4)(a) were read without reference to “30% of”,(D)amounts described in subparagraph 66.7(4)(a)(ii) that became receivable at the relevant time were not taken into account, and(E)no reduction under subsection 80(8) at or after the relevant time were taken into account, and(iii)such portion of the amount otherwise determined under this paragraph as was otherwise applied to reduce the amount otherwise determined under this description,Gis the total of all amounts that became receivable by the taxpayer before that time that are to be included in the amount determined under this description by virtue of paragraph 66(12.5)(a),His the total of all amounts each of which is an amount received before that time on account of any amount referred to in the description of C,Iis the total amount of assistance that the taxpayer has received or is entitled to receive in respect of any Canadian oil and gas property expense incurred after 1980 or that can reasonably be related to any such expense after 1980,I.1is the total of all amounts by which the cumulative Canadian oil and gas property expense of the taxpayer is required because of subsection 80(8) to be reduced at or before that time, andJis the total of all amounts that are required to be deducted before that time under paragraph 66.7(12)(d) in computing the taxpayer’s cumulative Canadian oil and gas property expense; (frais cumulatifs à l’égard de biens canadiens relatifs au pétrole et au gaz)proceeds of dispositionproceeds of dispositionhas the meaning assigned by section 54. (produit de disposition)Marginal note:Application of ss. 66(15) and 66.1(6)(5.1)The definitions in subsections 66(15) and 66.1(6) apply to this section.Marginal note:Share of partner(6)Except as provided in subsection 66.4(7), where a taxpayer is a member of a partnership, the taxpayer’s share of any amount that would be an amount referred to in the description of in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5), in paragraph (a) of the description of F in that definition or in the description of G or I in that definition in respect of the partnership for a taxation year of the partnership if section 96 were read without reference to paragraph 96(1)(d) shall, for the purposes of this Act, be deemed to be an amount referred to in the description of D in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5), in paragraph (a) of the description of F in that definition or in the description of G or I in that definition, whichever is applicable, in respect of the taxpayer for the taxation year of the taxpayer in which the partnership’s taxation year ends.Marginal note:Exception(7)Where a non-resident person is a member of a partnership that is deemed under paragraph 115(4)(b) to have disposed of any Canadian resource property, the person’s share of any amount that would be an amount referred to in the description of D in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5), in paragraph (a) of the description of F in that definition or in the description of G or I in that definition in respect of the partnership for a taxation year of the partnership if section 96 were read without reference to paragraph 96(1)(d) shall, for the purposes of this Act, be deemed to be an amount referred to in the description of D in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5), in paragraph (a) of the description of F in that definition or in the description of G or I in that definition, whichever is applicable, in respect of the person for the taxation year of the person that is deemed under paragraph 115(4)(a) to have ended.
(a)the total of all amounts referred to in the descriptions of E to J in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5) that are deducted in computing the taxpayer’s cumulative Canadian oil and gas property expense at the end of the year
(b)all amounts referred to in the descriptions of A to D.1 in the definitioncumulative Canadian oil and gas property expensein subsection 66.4(5) that are included in computing the taxpayer’s cumulative Canadian oil and gas property expense at the end of the year, and(c)the total determined under subparagraph 66.7(12.1)(c)(i) in respect of the taxpayer for the year.
(a)the lesser of(i)the total of(A)the taxpayer’s cumulative Canadian oil and gas property expense at the end of the year, and(B)the amount, if any, by which(I)the total determined under subparagraph 66.7(12.1)(c)(i) in respect of the taxpayer for the yearexceeds(II)the amount that would, but for paragraph 66.4(1)(c), be determined under subsection 66.4(1) in respect of the taxpayer for the year, and(ii)the amount, if any, by which the total of all amounts each of which is(A)an amount included in the taxpayer’s income for the year by virtue of a disposition in the year of inventory described in section 66.3 that was a share or any interest in or right to — or, for civil law, any right in or to — a share acquired by the taxpayer under circumstances described in paragraph (c) of the definitionCanadian oil and gas property expensein subsection (5), or(B)an amount included by virtue of paragraph 12(1)(e) in computing the taxpayer’s income for the year to the extent that it relates to inventory described in clause (A)exceeds(C)the total of all amounts deducted as a reserve by virtue of paragraph 20(1)(n) in computing the taxpayer’s income for the year to the extent that the reserve relates to inventory described in clause (A);(b)10% of the amount, if any, by which the amount determined under subparagraph 66.4(2)(a)(i) exceeds the amount determined under subparagraph 66.4(2)(a)(ii); and(c)the amount determined by the formulaA(B − C)whereAis(i)for taxation years that end before 2024, 5%,(ii)for taxation years that begin before 2024 and end after 2023, the amount determined by the formula0.05(I/J) + 0.025(K/J)whereIis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer before 2024 and in the taxation year,Jis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer in the taxation year, andKis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer after 2023 and in the taxation year, and(iii)for taxation years that begin after 2023, 2.5%,Bis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer in the taxation year, andCis the amount determined by the formula(D − E) − (F − G − H)whereDis the total of the amounts determined for E to J in the definitioncumulative Canadian oil and gas property expensein subsection (5) at the end of the taxation year,Eis the total of the amounts determined for E to J in the definitioncumulative Canadian oil and gas property expensein subsection (5) at the beginning of the taxation year,Fis the total of the amounts determined for A to D.1 in the definitioncumulative Canadian oil and gas property expensein subsection (5) at the end of the taxation year,Gis the total of the amounts determined for A to D.1 in the definitioncumulative Canadian oil and gas property expensein subsection (5) at the end of the preceding taxation year, andHis the amount determined for B.
(i)the total of(A)the taxpayer’s cumulative Canadian oil and gas property expense at the end of the year, and(B)the amount, if any, by which(I)the total determined under subparagraph 66.7(12.1)(c)(i) in respect of the taxpayer for the yearexceeds(II)the amount that would, but for paragraph 66.4(1)(c), be determined under subsection 66.4(1) in respect of the taxpayer for the year, and(ii)the amount, if any, by which the total of all amounts each of which is(A)an amount included in the taxpayer’s income for the year by virtue of a disposition in the year of inventory described in section 66.3 that was a share or any interest in or right to — or, for civil law, any right in or to — a share acquired by the taxpayer under circumstances described in paragraph (c) of the definitionCanadian oil and gas property expensein subsection (5), or(B)an amount included by virtue of paragraph 12(1)(e) in computing the taxpayer’s income for the year to the extent that it relates to inventory described in clause (A)exceeds(C)the total of all amounts deducted as a reserve by virtue of paragraph 20(1)(n) in computing the taxpayer’s income for the year to the extent that the reserve relates to inventory described in clause (A);
(A)the taxpayer’s cumulative Canadian oil and gas property expense at the end of the year, and(B)the amount, if any, by which(I)the total determined under subparagraph 66.7(12.1)(c)(i) in respect of the taxpayer for the yearexceeds(II)the amount that would, but for paragraph 66.4(1)(c), be determined under subsection 66.4(1) in respect of the taxpayer for the year, and
(I)the total determined under subparagraph 66.7(12.1)(c)(i) in respect of the taxpayer for the year
(II)the amount that would, but for paragraph 66.4(1)(c), be determined under subsection 66.4(1) in respect of the taxpayer for the year, and
(A)an amount included in the taxpayer’s income for the year by virtue of a disposition in the year of inventory described in section 66.3 that was a share or any interest in or right to — or, for civil law, any right in or to — a share acquired by the taxpayer under circumstances described in paragraph (c) of the definitionCanadian oil and gas property expensein subsection (5), or(B)an amount included by virtue of paragraph 12(1)(e) in computing the taxpayer’s income for the year to the extent that it relates to inventory described in clause (A)
(C)the total of all amounts deducted as a reserve by virtue of paragraph 20(1)(n) in computing the taxpayer’s income for the year to the extent that the reserve relates to inventory described in clause (A);
(i)for taxation years that end before 2024, 5%,(ii)for taxation years that begin before 2024 and end after 2023, the amount determined by the formula0.05(I/J) + 0.025(K/J)whereIis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer before 2024 and in the taxation year,Jis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer in the taxation year, andKis the total of all accelerated Canadian oil and gas property expenses incurred by the taxpayer after 2023 and in the taxation year, and(iii)for taxation years that begin after 2023, 2.5%,
(a)qualifies as a Canadian oil and gas property expense at the time it is incurred, other than(i)an expense in respect of which the taxpayer is a successor, within the meaning of subsection 66.7(5), and(ii)a cost in respect of a Canadian resource property acquired by the taxpayer, or a partnership in which the taxpayer is a member, from a person or partnership with which the taxpayer does not deal at arm’s length, and(b)is incurred after November 20, 2018 and before 2028; (frais à l’égard de biens canadiens relatifs au pétrole et au gaz accélérés)
(i)an expense in respect of which the taxpayer is a successor, within the meaning of subsection 66.7(5), and(ii)a cost in respect of a Canadian resource property acquired by the taxpayer, or a partnership in which the taxpayer is a member, from a person or partnership with which the taxpayer does not deal at arm’s length, and
(a)the cost to the taxpayer of, including any payment for the preservation of a taxpayer’s rights in respect of, any property described in paragraph (a), (c) or (d) of the definitionCanadian resource propertyin subsection 66(15) or any right to or interest in — or, for civil law, any right in or to — the property (other than a right or an interest that the taxpayer has by reason of being a beneficiary under a trust or a member of a partnership), or an amount paid to Her Majesty in right of the Province of Saskatchewan as a net royalty payment pursuant to a net royalty petroleum and natural gas lease that was in effect on March 31, 1977 to the extent that it can reasonably be regarded as a cost of acquiring the lease,(b)subject to section 66.8, the taxpayer’s share of any expense referred to in paragraph (a) incurred by a partnership in a fiscal period thereof at the end of which the taxpayer was a member of the partnership, unless the taxpayer elects in respect of the share in prescribed form and manner on or before the day that is 6 months after the taxpayer’s taxation year in which that period ends, or(c)any cost or expense referred to in paragraph (a) incurred by the taxpayer pursuant to an agreement in writing with a corporation, entered into before 1987, under which the taxpayer incurred the cost or expense solely as consideration for shares, other than prescribed shares, of the capital stock of the corporation issued to the taxpayer or any interest in or right to — or, for civil law, any right in or to — such shares,
(d)any consideration given by the taxpayer for any share or any interest therein or right thereto, except as provided by paragraph (c), or(e)any expense described in paragraph (c) incurred by any other taxpayer to the extent that the expense was,(i)by virtue of that paragraph, a Canadian oil and gas property expense of that other taxpayer,(ii)by virtue of paragraph (i) of the definitionCanadian exploration expensein subsection 66.1(6), a Canadian exploration expense of that other taxpayer, or(iii)by virtue of paragraph (g) of the definitionCanadian development expensein subsection 66.2(5), a Canadian development expense of that other taxpayer,
(i)by virtue of that paragraph, a Canadian oil and gas property expense of that other taxpayer,(ii)by virtue of paragraph (i) of the definitionCanadian exploration expensein subsection 66.1(6), a Canadian exploration expense of that other taxpayer, or(iii)by virtue of paragraph (g) of the definitionCanadian development expensein subsection 66.2(5), a Canadian development expense of that other taxpayer,
(a)the amount, if any, by which the proceeds of disposition in respect of the particular property that became receivable by the taxpayer before that time exceed any outlays or expenses made or incurred by the taxpayer before that time for the purpose of making the disposition and that were not otherwise deductible for the purposes of this Part
(b)the amount, if any, by which(i)the total of all amounts that would be determined under paragraph 66.7(5)(a), immediately before the time (in this paragraph and paragraph (c) referred to as the “relevant time”) when such proceeds of disposition became receivable, in respect of the taxpayer and an original owner of the particular property (or of any other property acquired by the taxpayer with the particular property in circumstances in which subsection 66.7(5) applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time) if(A)amounts that became receivable at or after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable before the relevant time were made before the relevant time,(C)paragraph 66.7(5)(a) were read without reference to “10% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into accountexceeds the total of(ii)all amounts that would be determined under paragraph 66.7(5)(a) at the relevant time in respect of the taxpayer and an original owner of the particular property (or of that other property described in subparagraph (i)) if(A)amounts that became receivable after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable at or before the relevant time were made before the relevant time,(C)paragraph 66.7(5)(a) were read without reference to “10% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into account, and(iii)such portion of the amount determined under this paragraph as was otherwise applied to reduce the amount otherwise determined under this description, and(c)the amount, if any, by which(i)the total of all amounts that would be determined under paragraph 66.7(4)(a), immediately before the relevant time, in respect of the taxpayer and an original owner of the particular property (or of any other property acquired by the taxpayer with the particular property in circumstances in which subsection 66.7(4) applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time) if(A)amounts that became receivable at or after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable before the relevant time were made before the relevant time,(C)paragraph 66.7(4)(a) were read without reference to “30% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into accountexceeds the total of(ii)all amounts that would be determined under paragraph 66.7(4)(a) at the relevant time in respect of the taxpayer and an original owner of the particular property (or of that other property described in subparagraph (i)) if(A)amounts that became receivable after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable at or before the relevant time were made before the relevant time,(C)paragraph 66.7(4)(a) were read without reference to “30% of”,(D)amounts described in subparagraph 66.7(4)(a)(ii) that became receivable at the relevant time were not taken into account, and(E)no reduction under subsection 80(8) at or after the relevant time were taken into account, and(iii)such portion of the amount otherwise determined under this paragraph as was otherwise applied to reduce the amount otherwise determined under this description,
(i)the total of all amounts that would be determined under paragraph 66.7(5)(a), immediately before the time (in this paragraph and paragraph (c) referred to as the “relevant time”) when such proceeds of disposition became receivable, in respect of the taxpayer and an original owner of the particular property (or of any other property acquired by the taxpayer with the particular property in circumstances in which subsection 66.7(5) applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time) if(A)amounts that became receivable at or after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable before the relevant time were made before the relevant time,(C)paragraph 66.7(5)(a) were read without reference to “10% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into account
(A)amounts that became receivable at or after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable before the relevant time were made before the relevant time,(C)paragraph 66.7(5)(a) were read without reference to “10% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into account
(ii)all amounts that would be determined under paragraph 66.7(5)(a) at the relevant time in respect of the taxpayer and an original owner of the particular property (or of that other property described in subparagraph (i)) if(A)amounts that became receivable after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable at or before the relevant time were made before the relevant time,(C)paragraph 66.7(5)(a) were read without reference to “10% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into account, and(iii)such portion of the amount determined under this paragraph as was otherwise applied to reduce the amount otherwise determined under this description, and
(A)amounts that became receivable after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable at or before the relevant time were made before the relevant time,(C)paragraph 66.7(5)(a) were read without reference to “10% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into account, and
(i)the total of all amounts that would be determined under paragraph 66.7(4)(a), immediately before the relevant time, in respect of the taxpayer and an original owner of the particular property (or of any other property acquired by the taxpayer with the particular property in circumstances in which subsection 66.7(4) applied and in respect of which the proceeds of disposition became receivable by the taxpayer at the relevant time) if(A)amounts that became receivable at or after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable before the relevant time were made before the relevant time,(C)paragraph 66.7(4)(a) were read without reference to “30% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into account
(A)amounts that became receivable at or after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable before the relevant time were made before the relevant time,(C)paragraph 66.7(4)(a) were read without reference to “30% of”, and(D)no reduction under subsection 80(8) at or after the relevant time were taken into account
(ii)all amounts that would be determined under paragraph 66.7(4)(a) at the relevant time in respect of the taxpayer and an original owner of the particular property (or of that other property described in subparagraph (i)) if(A)amounts that became receivable after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable at or before the relevant time were made before the relevant time,(C)paragraph 66.7(4)(a) were read without reference to “30% of”,(D)amounts described in subparagraph 66.7(4)(a)(ii) that became receivable at the relevant time were not taken into account, and(E)no reduction under subsection 80(8) at or after the relevant time were taken into account, and(iii)such portion of the amount otherwise determined under this paragraph as was otherwise applied to reduce the amount otherwise determined under this description,
(A)amounts that became receivable after the relevant time were not taken into account,(B)each designation made under subparagraph 66.7(4)(a)(iii) in respect of an amount that became receivable at or before the relevant time were made before the relevant time,(C)paragraph 66.7(4)(a) were read without reference to “30% of”,(D)amounts described in subparagraph 66.7(4)(a)(ii) that became receivable at the relevant time were not taken into account, and(E)no reduction under subsection 80(8) at or after the relevant time were taken into account, and
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 66.41994, c. 7, Sch