GENERAL, R.R.O. 1990, Reg. 183

JurisdictionOntario

Corporations Tax Act
Loi sur l’imposition des sociétés

R.R.O. 1990, REGULATION 183

GENERAL

Consolidation Period: From January 28, 2011 to the e-Laws currency date.

Last amendment: 18/11.

This Regulation is made in English only.

PART I
DEDUCTIONS IN RESPECT OF OIL OR GAS WELLS AND MINERAL RESOURCES

Interpretation

101. (1) In this Part,

“Canadian exploration and development expense” has the meaning given to that expression by subsection 18 (15) of the Act;

“Canadian exploration and development expenses incurred in oil or gas operations” means that part of the corporation’s Canadian exploration and development expenses that is,

(a) a drilling or exploration expense, including any general geological or geophysical expense incurred on or in respect of exploring or drilling for petroleum or natural gas in Canada,

(b) an expenditure incurred for the purpose of,

(i) exploration in respect of, or

(ii) development of,

a petroleum deposit for the purpose of gaining or producing income from the extraction of material from such deposit, or

(c) the cost of a Canadian oil or gas resource property;

“Canadian exploration and development overhead expense” means an expense described in subsections 1206 (1), (5), (6) and (7) of the regulations made under the Income Tax Act (Canada);

“Canadian fossil fuel source” means,

(a) a natural accumulation of petroleum or natural gas in Canada that is not a mineral resource in Canada,

(b) an oil or gas well in Canada, or

(c) a bituminous sands deposit or oil shale deposit that is a mineral resource in Canada;

“Canadian oil and gas exploration expense” means an expense so described in subsection 1206 (1) of the regulations made under the Income Tax Act (Canada);

“Canadian oil or gas resource property” means a Canadian resource property,

(a) that is described in paragraph (a), subparagraph (b) (i) or paragraph (c) or (d) of the definition of “Canadian resource property” in subsection 66 (15) of the Income Tax Act (Canada),

(b) that would be property described in subparagraph (b) (ii) or paragraph (e) or (f) of that definition if the only mineral resource referred to in that subparagraph or paragraph were a petroleum deposit, or

(c) that is a right to or interest in any property described in clause (a) or (b);

“Canadian resource property” has the meaning given to that expression by subsection 66 (15) of the Income Tax Act (Canada);

“Crown entity” means a person referred to in subclause 11.0.1 (3) (a) (i), (ii) or (iii) of the Act;

“earned depletion base” of a corporation as of a particular time means the amount by which 331/3 per cent of the aggregate of,

(a) three times its earned depletion base as at the end of its last taxation year ending before the 20th day of April, 1977, as determined under subsection (2),

(b) all amounts, in respect of expenditures (other than expenditures to acquire property in circumstances that entitled the corporation to a deduction under section 1202 of the regulations made under the Income Tax Act (Canada), as that section applies for the purposes of subsection 104 (2), or would entitle the corporation to such a deduction if the amounts referred to in paragraphs 1202 (2) (a) and (b) of those regulations were sufficient for the purpose) each of which was,

(i) a Canadian exploration and development expense incurred in oil or gas operations other than,

(A) a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was a Canadian exploration and development expense or an exploration, prospecting and development expense, as the case may be, of the corporation,

(B) the cost to it of any Canadian oil or gas resource property acquired by it,

(C) a Canadian exploration and development expense that was incurred after a petroleum deposit had come into production in reasonable commercial quantities and may reasonably be considered to be related to the petroleum deposit or to a potential or actual extension thereof,

(D) a Canadian exploration and development expense which has been renounced by the corporation under subsection 18 (5) of the Act,

(E) an amount that, by virtue of clause (d) of the definition of “Canadian exploration and development expenses” in subsection 18 (15) of the Act was a Canadian exploration and development expense, if such amount was a cost or expense referred to in sub-subclause (A), (B), (C) or (D) that was incurred by an association, partnership or syndicate referred to in the said clause (d), or

(F) an amount that by virtue of clause (e) of the definition of “Canadian exploration and development expenses” in subsection 18 (15) of the Act was a Canadian exploration and development expense, if such amount was a cost or expense referred to in sub-subclause (A), (B), (C) or (D) that the corporation incurred pursuant to an agreement referred to in the said clause (e),

(ii) the stated percentage of a Canadian exploration expense incurred after May 19, 1981 which qualifies for the purposes of subparagraph 1205 (1) (a) (ii) of the regulations made under the Income Tax Act (Canada) and was incurred in connection with oil or gas exploration,

(iii) the specified percentage of a Canadian oil and gas exploration expense incurred after 1980 and before 1984 which qualifies for the purposes of subparagraph 1205 (1) (a) (v) of the regulations made under the Income Tax Act (Canada),

(iv) the stated percentage of an expenditure incurred by the corporation that qualifies for the purposes of subparagraph 1205 (1) (a) (vi) of the regulations made under the Income Tax Act (Canada) other than clause (A) thereof or that portion of an expenditure incurred by the corporation that qualifies for the purposes of clause 1205 (1) (a) (vi) (A) of the regulations made under the Income Tax Act (Canada),

Note: Clause (b), as amended by O. Reg. 355/98, s. 10 (1-3), applies to corporations for taxation years ending after February 17, 1987. See: O. Reg. 355/98, s. 10 (8).

(c) the stated percentage of all expenditures that qualify for the purposes of paragraphs 1205 (1) (b) and (c) of the regulations made under the Income Tax Act (Canada) that were incurred by the corporation in connection with a petroleum deposit,

Note: Clause (c), as amended by O. Reg. 355/98, s. 10 (4, 5), applies to corporations for taxation years ending after February 17, 1987, except that paragraph 1205 (1) (c) of the regulations made under the Income Tax Act (Canada), as it applies for the purpose of clause (c) of the definition of “earned depletion base” shall, in its application to a taxation year ending before 1988, be read without reference to the words “or paragraph (a) of Class 41”. See: O. Reg. 355/98, s. 10 (8).

(d) three times the total of all amounts each of which is an amount equal to the lesser of,

(i) the amount that would be determined under subsection 108 (1) in computing the corporation’s income for a taxation year that ends before the particular time, determined on the basis that the corporation had no profits from mining operations and that the amount determined to be “C” in the formula in subsection 108 (1) were nil, and

(ii) the amount determined to be “C” in the formula in subsection 108 (1) in respect of the corporation for that year, and

Note: Clause (d), as remade by O. Reg. 355/98, s. 24 (1), applies to corporations for taxation years ending after December 20, 1991. See: O. Reg. 355/98, s. 24 (5).

(d.1) three times the aggregate of all amounts each of which is the specified amount determined under subsection 1202 (4) of the regulations made under the Income Tax Act (Canada), as made applicable by subsection 104 (2), in respect of the corporation for a taxation year ending after February 17, 1987 and before the particular time,

Note: Clause (d.1), as made by O. Reg. 355/98, s. 10 (5), applies to corporations for taxation years ending after February 17, 1987. See: O. Reg. 355/98, s. 10 (8).

exceeds the aggregate of,

(e) all amounts deducted by the corporation under subsection 103 (1) in computing its income for all taxation years ending after April 19, 1977 and before the particular time,

Note: Clause (e), as remade by O. Reg. 355/98, s. 10 (6), applies to corporations for taxation years ending after February 17, 1987. See: O. Reg. 355/98, s. 10 (8).

(f) 331/3 per cent of the aggregate of all amounts each of which is the stated percentage of a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was included in the capital cost to it of depreciable property described in subclause (b) (iv) or clause (c),

Note: Clause (f), as remade by O. Reg. 355/98, s. 10 (6), applies to corporations for taxation years ending after February 17, 1987. See: O. Reg. 355/98, s. 10 (8).

(g) 33 1/3 per cent of the aggregate of all amounts, each of which is an amount that became receivable by the corporation after April 28, 1978 and before the earlier of May 20, 1981 and the particular time and in respect of which the consideration given by the corporation therefor was a property (other than a share, or a property that would have been a Canadian resource property if it had been acquired by the corporation at the time the consideration was given) or services the cost of which may reasonably be regarded as having been primarily an expenditure that was added in computing,

(i) the corporation’s earned depletion base by virtue of subclause (b) (i) or (ii), or

(ii) the earned depletion base of an original owner of a property by virtue of subclause (b) (i) or (ii) as it applied to the original owner, where the corporation acquired the property in circumstances in which subsection 1202 (2) of the regulations made under the Income Tax Act (Canada) applies,

Note: Clause (g), as remade by O. Reg. 355/98, s. 10 (6), applies to corporations for taxation years ending after February 17, 1987. See: O...

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