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(f) subject to section 66.8, the taxpayer's
share of the specified foreign exploration
and development expenses of a
partnership incurred in respect of that
country in a fiscal period of the
partnership if, at the end of that period,
the taxpayer was a member of the
partnership.
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(17) Subsection 66(15.1) of the Act is
replaced by the following:
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Other
definitions
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(15.1) The definitions in subsections
66.1(6), 66.2(5), 66.21(1) , 66.4(5) and
66.5(2) apply in this section.
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(18) Subsection 66(18) of the Act is
replaced by the following:
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Members of
partnerships
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(18) For the purposes of this section,
subsection 21(2), sections 59.1 and 66.1 to
66.7, paragraph (d) of the definition
``investment expense'' in subsection 110.6(1)
and the descriptions of C and D in subsection
211.91(1), where a person's share of an outlay
or expense made or incurred by a partnership
in a fiscal period of the partnership is included
in respect of the person under paragraph (d) of
the definition ``foreign exploration and
development expenses'' in subsection (15),
paragraph (h) of the definition ``Canadian
exploration expense'' in subsection 66.1(6),
paragraph (f) of the definition ``Canadian
development expense'' in subsection 66.2(5),
paragraph (e) of the definition ``foreign
resource expense'' in subsection 66.21(1) or
paragraph (b) of the definition ``Canadian oil
and gas property expense'' in subsection
66.4(5), the portion of the outlay or expense so
included is deemed, except for the purposes of
applying the definitions ``foreign exploration
and development expenses'', ``Canadian
exploration expense'', ``Canadian
development expense'', ``foreign resource
expense '' and ``Canadian oil and gas property
expense'' in respect of the person, to be made
or incurred by the person at the end of that
fiscal period.
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(19) Subsection (1) applies to the 1999
and subsequent taxation years except that
in its application to the 1999 taxation year,
subparagraph 66(4)(a)(i) of the Act, as
enacted by subsection (1), shall be read as
follows:
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(i) the total of the foreign exploration and
development expenses incurred by the
taxpayer before the end of the year and at
a time which the taxpayer was resident in
Canada
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(20) Subsection (2) applies to the 1995
and subsequent taxation years, except that
the portion of paragraph 66(4)(b) of the Act
before subparagraph (ii), as enacted by
subsection (2), shall be read as follows in
respect of cessations of residence that
occurred before February 28, 2000:
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(b) of that total, the greatest of
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(i) the amount, if any, claimed by the
taxpayer not exceeding 10% of the
amount determined under paragraph (a)
in respect of the taxpayer for the year,
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(i.1) if the taxpayer ceased to be resident
in Canada immediately after the end of
the year, the amount, if any, claimed by
the taxpayer not exceeding the amount
determined under paragraph (a) in
respect of the taxpayer for the year, and
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(21) Subsections (3) and (5) to (8),
subsection 66(12.41) of the Act, as enacted
by subsection (9), subsections (10) to (13)
and paragraph (k) of the definition ``foreign
exploration and development expenses'' in
subsection 66(15) of the Act, as enacted by
subsection (15), apply to taxation years that
begin after 2000.
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(22) Subsections 66(4.1) and (4.2) of the
Act, as enacted by subsection (4), apply to
taxation years of a taxpayer that begin after
the earlier of
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(a) December 31, 1999; and
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(b) where, for the purposes of subsection
117(26), a date is designated in writing by
the taxpayer and the designation is filed
with the Minister of National Revenue on
or before the taxpayer's filing-due date
for the taxpayer's taxation year that
includes the day on which this Act
receives royal assent, the later of
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(i) the date so designated, and
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(23) Subsection 66(4.3) of the Act, as
enacted by subsection (4), applies to the
1998 and subsequent taxation years.
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(24) Subsection 66(12.42) of the Act, as
enacted by subsection (9), and subsection
(18) apply to fiscal periods that begin after
2000.
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(25) Subsection (14) applies to expenses
incurred after December 21, 2000, other
than expenses incurred pursuant to an
agreement in writing made before
December 22, 2000.
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(26) Paragraph (j) of the definition
``foreign exploration and development
expenses'' in subsection 66(15) of the Act, as
enacted by subsection (15), and subsection
(17) apply after 2000.
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(27) Paragraph (l) of the definition
``foreign exploration and development
expenses'' in subsection 66(15) of the Act, as
enacted by subsection (15), applies after
February 27, 2000.
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(28) Subsection (16) applies after 1994.
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45. (1) Subparagraph (d)(i) of the
definition ``Canadian exploration expense''
in subsection 66.1(6) of the Act is replaced
by the following:
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(i) the drilling or completing of the
well resulted in the discovery that a
natural underground reservoir
contains petroleum or natural gas,
where
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(A) before the time of the discovery,
no person or partnership had
discovered that the reservoir
contained either petroleum or
natural gas, and
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(B) the discovery occurred at any
time before six months after the end
of the year,
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(2) The definition ``Canadian exploration
expense'' in subsection 66.1(6) of the Act is
amended by adding the following after
paragraph (k):
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(k.1) an expense that is the cost, or any
part of the cost, to the taxpayer of any
depreciable property of a prescribed class
that was acquired after 1987,
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(3) The description of L in the definition
``cumulative Canadian exploration
expense'' in subsection 66.1(6) of the Act is
replaced by the following:
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L is that portion of the total of all amounts
each of which was deducted by the
taxpayer under subsection 127(5) or (6)
for a taxation year that ended before
that time and that can reasonably be
attributed to a qualified Canadian
exploration expenditure or a
flow-through mining expenditure
(within the meaning assigned by
subsection 127(9)) made in a preceding
taxation year, and
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(4) Paragraph 66.1(9)(a) of the Act is
replaced by the following:
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(a) the drilling or completing of an oil or gas
well resulted in the discovery that a natural
underground reservoir contains petroleum
or natural gas and, before the time of the
discovery, no person or partnership had
discovered that the reservoir contained
either petroleum or natural gas,
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(5) Subsections (1) and (4) apply to
expenses incurred after March 1987.
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(6) Subsection (2) applies to the 1988 and
subsequent taxation years.
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(7) Subsection (3) applies after October
17, 2000.
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46. (1) The definition ``Canadian
development expense'' in subsection 66.2(5)
of the Act is amended by adding the
following after paragraph (i):
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(i.1) an expense that is the cost, or any
part of the cost, to the taxpayer of any
depreciable property of a prescribed class
that was acquired after 1987,
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(2) Subsection (1) applies to the 1988 and
subsequent taxation years.
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47. (1) The Act is amended by adding the
following after section 66.2:
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Definitions
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66.21 (1) The definitions in this subsection
apply in this section.
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``adjusted
cumulative
foreign
resource
expense''
« frais
cumulatifs
rajustés
relatifs à des
ressources à
l'étranger »l
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``adjusted cumulative foreign resource
expense'' of a taxpayer, in respect of a
country, at the end of a taxation year means
the total of
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(a) the cumulative foreign resource
expense of the taxpayer, in respect of that
country, at the end of the year; and
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(b) the amount, if any, by which
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(i) the total determined under
paragraph 66.7(13.2)(a) in respect of
that country and the taxpayer for the
year
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(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.
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``cumulative
foreign
resource
expense''
« frais
cumulatifs
relatifs à des
ressources à
l'étranger »
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``cumulative foreign resource expense'' of a
taxpayer, in respect of a country other than
Canada at a particular time, means the
amount determined by the formula
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(A + B + C + D) - (E + F + G + H + I + J)
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A is the total of all foreign resource
expenses, in respect of that country,
made or incurred by the taxpayer
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(a) before the particular time, and
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(b) at a time (in this definition referred to
as a ``resident time'')
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(i) at which the taxpayer was resident
in Canada, and
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(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;
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B is the total of all amounts required to be
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;
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C is 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;
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D is 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;
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E is 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;
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F is 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
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(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
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(b) the amount, if any, by which
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(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
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(A) amounts that became
receivable at or after the relevant
time were not taken into account,
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(B) paragraph 66.7(2.3)(a) were
read without reference to ``30%
of'', and
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(C) no reduction under subsection
80(8) at or after the relevant time
were taken into account
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(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
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(A) amounts that became
receivable after the relevant time
were not taken into account,
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(B) paragraph 66.7(2.3)(a) were
read without reference to ``30%
of'', and
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(C) no reduction under subsection
80(8) at or after the relevant time
were taken into account, and
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(iii) the portion of the amount
otherwise determined under this
paragraph that was otherwise
applied to reduce the amount
otherwise determined under this
description;
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G is 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;
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H is 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;
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I is 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; and
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J is 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.
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``foreign
resource
expense''
« frais relatifs
à des
ressources à
l'étranger »l
|
e ```foreign resource expense'' of a taxpayer,
in respect of a country other than Canada,
means
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(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,
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(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
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(ii) carrying out geological,
geophysical or geochemical surveys,
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(iii) drilling by rotary, diamond,
percussion or other methods, or
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(iv) trenching, digging test pits and
preliminary sampling,
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(c) the cost to the taxpayer of any of the
taxpayer's foreign resource property in
respect of that country,
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(d) any annual payment made by the
taxpayer for the preservation of a foreign
resource property in respect of that
country, and
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(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
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(f) an expenditure that is the cost, or any
part of the cost, to the taxpayer of any
depreciable property of a prescribed
class,
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(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,
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