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(3) Subsection (1) applies to the 2003 and
subsequent taxation years.
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(4) Subsection (2) applies to taxation
years that begin after 2006.
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13. (1) The Act is amended by adding the
following after section 125.1:
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| Definitions
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125.11 (1) The following definitions apply
in section 123.4 and this section.
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``resource rate
reduction
percentage''
« pourcentage
de réduction
du taux
applicable
aux
ressources »
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``resource rate reduction percentage'', of a
corporation for a taxation year, is the total
of
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(a) that proportion of 1% that the number
of days in the taxation year that are in
2003 is of the number of days in the
taxation year,
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(b) that proportion of 2% that the number
of days in the taxation year that are in
2004 is of the number of days in the
taxation year,
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(c) that proportion of 3% that the number
of days in the taxation year that are in
2005 is of the number of days in the
taxation year,
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(d) that proportion of 5% that the number
of days in the taxation year that are in
2006 is of the number of days in the
taxation year, and
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(e) that proportion of 7% that the number
of days in the taxation year that are after
2006 is of the number of days in the
taxation year.
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``taxable
resource
income''
« revenu
imposable
provenant de
ressources »
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``taxable resource income'', of a taxpayer for
a taxation year, is the lesser of the
taxpayer's taxable income for the taxation
year and the amount determined by the
formula
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3(A/B) + C - D
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A is the total of all amounts each of which
is deducted by the taxpayer under
paragraph 20(1)(v.1) in computing the
taxpayer's income for the taxation year;
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B is the percentage that is the total of
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(a) that proportion of 100% that the
number of days in the taxation year
that are before 2003 is of the number of
days in the taxation year,
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(b) that proportion of 90% that the
number of days in the taxation year
that are in 2003 is of the number of
days in the taxation year,
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(c) that proportion of 75% that the
number of days in the taxation year
that are in 2004 is of the number of
days in the taxation year,
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(d) that proportion of 65% that the
number of days in the taxation year
that are in 2005 is of the number of
days in the taxation year, and
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(e) that proportion of 35% that the
number of days in the taxation year
that are in 2006 is of the number of
days in the taxation year;
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C is the total of all amounts included in
computing the taxpayer's income for
the taxation year under paragraph
59(3.2)(b) or (c); and
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D is the total of all amounts deducted by
the taxpayer under any of sections 65 to
66.7, other than subsections 66(4),
66.21(4) and 66.7(2) and (2.3), of this
Act, and subsections 17(2) and (6) and
section 29 of the Income Tax
Application Rules, in computing the
taxpayer's income for the taxation year.
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| Resource
deduction
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(2) There may be deducted from a
corporation's tax otherwise payable under this
Part for a taxation year the product obtained
by multiplying the corporation's resource rate
reduction percentage for the taxation year by
the corporation's taxable resource income for
the taxation year.
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(2) Section 125.11 of the Act is repealed.
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(3) Subsection (1) applies to the 2003 and
subsequent taxation years except that, for
those taxation years that begin before June
9, 2003, the value of C in the formula in the
definition ``taxable resource income'' in
subsection 125.11(1) of the Act is deemed to
be nil.
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(4) Subsection (2) applies to taxation
years that begin after 2006.
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14. (1) Subparagraph 127(5)(a)(i) of the
Act is replaced by the following:
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(i) the taxpayer's investment tax credit at
the end of the year in respect of property
acquired before the end of the year, of the
taxpayer's flow-through mining
expenditure for the year or a preceding
taxation year, of the taxpayer's
pre-production mining expenditure for
the year or a preceding taxation year or of
the taxpayer's SR&ED qualified
expenditure pool at the end of the year or
at the end of a preceding taxation year,
and
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(2) Clause 127(5)(a)(ii)(A) of the Act is
replaced by the following:
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(A) the taxpayer's investment tax
credit at the end of the year in respect
of property acquired in a subsequent
taxation year, of the taxpayer's
flow-through mining expenditure for a
subsequent taxation year, of the
taxpayer's pre-production mining
expenditure for a subsequent taxation
year or of the taxpayer's SR&ED
qualified expenditure pool at the end
of a subsequent taxation year to the
extent that an investment tax credit
was not deductible under this
subsection for the subsequent year, and
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(3) The definition ``investment tax
credit'' in subsection 127(9) of the Act is
amended by adding the following after
paragraph (a.2):
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(a.3) where the taxpayer is a taxable
Canadian corporation, the specified
percentage of the taxpayer's
pre-production mining expenditure for
the year,
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(4) Paragraph (c) of the definition
``investment tax credit'' in subsection
127(9) of the Act is replaced by the
following:
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(c) the total of all amounts each of which
is an amount determined under any of
paragraphs (a) to (b) in respect of the
taxpayer for any of the 10 taxation years
immediately preceding or the 3 taxation
years immediately following the year,
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(5) Paragraph (e.1) of the definition
``investment tax credit'' in subsection
127(9) of the Act is amended by striking out
the word ``or'' at the end of subparagraph
(iii), by replacing the word ``and'' at the end
of subparagraph (iv) with the word ``or''
and by adding the following after
subparagraph (iv):
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(v) the amount of a pre-production
mining expenditure of the taxpayer
under paragraph (11.1)(c.3), and
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(6) The definition ``specified percentage''
in subsection 127(9) of the Act is amended
by striking out the word ``and'' at the end of
paragraph (h), by adding the word ``and''
at the end of paragraph (i) and by adding
the following after paragraph (i):
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(j) in respect of a pre-production mining
expenditure, if the expenditure was
incurred
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(7) Subsection 127(9) of the Act is
amended by adding the following in
alphabetical order:
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``pre-producti
on mining
expenditure''
« dépense
minière
préparatoire »
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``pre-production mining expenditure'', of a
taxable Canadian corporation for a taxation
year, means the total of all amounts each of
which is an expenditure incurred after 2002
by the taxable Canadian corporation in the
taxation year that
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(a) would be an expense described in
paragraph (f) or (g) of the definition
``Canadian exploration expense'' in
subsection 66.1(6) if the expression
``mineral resource'' in that paragraph
were defined to mean a mineral deposit
from which the principal mineral to be
extracted is diamond, a base or precious
metal deposit, or a mineral deposit from
which the principal mineral to be
extracted is an industrial mineral that,
when refined, results in a base or precious
metal, and
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(b) is not an expense that was renounced
under subsection 66(12.6) to the taxable
Canadian corporation;
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(8) Subsection 127(11.1) of the Act is
amended by striking out the word ``and'' at
the end of paragraph (c.2) and by adding
the following after that paragraph:
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(c.3) the amount of a taxpayer's
pre-production mining expenditure for a
taxation year is deemed to be the amount of
the taxpayer's pre-production mining
expenditure for the year as otherwise
determined less the amount of any
government assistance or non-government
assistance in respect of expenses included
in determining the taxpayer's
pre-production mining expenditure for the
year that, at the time of the filing of the
taxpayer's return of income for the year, the
taxpayer has received, is entitled to receive
or can reasonably be expected to receive;
and
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(9) Subsections (1) to (8) apply to the 2003
and subsequent taxation years.
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15. (1) Part XII of the Act is repealed.
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(2) Subsection (1) applies to taxation
years that begin after 2006.
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16. (1) Paragraph (a) of the definition
``carved-out income'' in subsection 209(1)
of the Act is replaced by the following:
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(a) the person's income for the year
attributable to the property computed
under Part I on the assumption that in
computing income no deduction was
allowed under section 20, subdivision e
of Division B of Part I or section 104,
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(2) Subsection (1) applies to taxation
years that begin after 2006.
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17. (1) Paragraph 219(1)(c) of the Act is
repealed.
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(2) Paragraph 219(1)(e) of the Act is
replaced by the following:
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(e) the total of all amounts each of which is
an amount in respect of a grant or credit that
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(i) can reasonably be considered to have
been received by the corporation in the
year as a reimbursement or repayment of,
or as indemnification or compensation
for, an amount deducted because of
paragraph (j), as it read in its application
to the 1995 taxation year, in computing
the amount determined under this
subsection for a preceding taxation year
that began before 1996, and
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(ii) was not included in computing the
corporation's base amount for any
taxation year,
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(3) Subsection 219(1) of the Act is
amended by adding the word ``and'' at the
end of paragraph (j) and by repealing
paragraph (k).
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(4) Subsections (1) to (3) apply to taxation
years that begin after 2006.
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18. (1) Paragraph (b) of the definition
``gross revenue'' in subsection 248(1) of the
Act is replaced by the following:
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(b) all amounts (other than amounts
referred to in paragraph (a)) included in
computing the taxpayer's income from a
business or property for the year because
of subsection 12(3) or (4) or section 12.2
of this Act or subsection 12(8) of the
Income Tax Act, chapter 148 of the
Revised Statutes of Canada, 1952.
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(2) Subsection (1) applies to taxation
years that begin after 2006.
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