(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,
	(b) a prospecting, exploration or development expense incurred by the taxpayer before December 22, 2000 (or after December 21, 2000 pursuant to an agreement in writing made before December 22, 2000) in searching for minerals in that country,
	(c) the cost to the taxpayer of the taxpayer's foreign resource property in respect of that country,
	(d) an annual payment made by the taxpayer in a taxation year of the taxpayer for the preservation of a foreign resource property in respect of that country,
	(e) an amount deemed by subsection 21(2) or (4) to be a foreign exploration and development expense incurred by the taxpayer, to the extent that it can reasonably be considered to relate to an amount that, without reference to this paragraph and paragraph (f), would be a specified foreign exploration and development expense in respect of that country, or
	(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.
	(17) Subsection 66(15.1) of the Act is replaced by the following:
Other definitions	(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.
	(18) Subsection 66(18) of the Act is replaced by the following:
Members of partnerships	(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.
	(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:
	(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
	(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:
	(b) of that total, the greatest of
	(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,
	(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
	(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.
	(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
	(a) December 31, 1999; and
	(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
	(i) the date so designated, and
	(ii) December 31, 1994.
	(23) Subsection 66(4.3) of the Act, as enacted by subsection (4), applies to the 1998 and subsequent taxation years.
	(24) Subsection 66(12.42) of the Act, as enacted by subsection (9), and subsection (18) apply to fiscal periods that begin after 2000.
	(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.
	(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.
	(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.
	(28) Subsection (16) applies after 1994.
	45. (1) Subparagraph (d)(i) of the definition ``Canadian exploration expense'' in subsection 66.1(6) of the Act is replaced by the following:
	(i) the drilling or completing of the well resulted in the discovery that a natural underground reservoir contains petroleum or natural gas, where
	(A) before the time of the discovery, no person or partnership had discovered that the reservoir contained either petroleum or natural gas, and
	(B) the discovery occurred at any time before six months after the end of the year,
	(2) The definition ``Canadian exploration expense'' in subsection 66.1(6) of the Act is amended by adding the following after paragraph (k):
	(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,
	(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:
	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
	(4) Paragraph 66.1(9)(a) of the Act is replaced by the following:
	(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,
	(5) Subsections (1) and (4) apply to expenses incurred after March 1987.
	(6) Subsection (2) applies to the 1988 and subsequent taxation years.
	(7) Subsection (3) applies after October 17, 2000.
	46. (1) The definition ``Canadian development expense'' in subsection 66.2(5) of the Act is amended by adding the following after paragraph (i):
	(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,
	(2) Subsection (1) applies to the 1988 and subsequent taxation years.
	47. (1) The Act is amended by adding the following after section 66.2:
Definitions	66.21 (1) The definitions in this subsection apply in this section.
``adjusted cumulative foreign resource expense'' « frais cumulatifs rajustés relatifs à des ressources à l'étranger »	``adjusted cumulative foreign resource expense'' of 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 year
	exceeds
	(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.
``cumulative foreign resource expense'' « frais cumulatifs relatifs à des ressources à l'étranger »	``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
	(A + B + C + D) - (E + F + G + H + I + J)
	where
	A is 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;
	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;
	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;
	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;
	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;
	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
	(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
	exceeds
	(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 account
	exceeds 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;
	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;
	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;
	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
	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.
``foreign resource expense'' « frais relatifs à des ressources à l'étranger »	``foreign resource expense'' of 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,