Income Tax Act — I-3.3 127
cribed in paragraph (g), (g.3) or (g.4) and not in paragraph (f), of the definition Canadian exploration expense in subsection 66.1(6) if the expression “mineral resource” in paragraph (g) of that definition 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 (b) is not an expense that (i) was renounced under subsection 66(12.6) to the taxable Canadian corporation except if the corporation is, on the effective date of the renunciation, (A) a corporation that would be a principal business corporation , as defined in subsection 66(15), if that definition were read without reference to its paragraphs (a), (a.1), (f), (h) and (i), and (B) the sole shareholder of the corporation that renounced the expenditure, or (ii) is a member’s share of an expense incurred by a partnership unless the expense was deemed by subsection 66(18) to have been made or incurred at the end of the fiscal period of the partnership by the member and throughout the fiscal period of the partnership in which the expense was incurred (A) each member of the partnership would (otherwise than because of being a member of the partnership) be a “principal-business corporation” as defined in subsection 66(15) of the Act, if that definition were read without reference to its paragraphs (a), (a.1), (f), (h) and (i), and (B) the corporation is a member of the partnership at the time the expenditure is incurred and would not be a specified member of the partnership if the definition specified member in subsection 248(1) were read without reference to its subparagraph (b)(ii), ( dépense minière préparatoire ) qualified Canadian exploration expenditure [Repealed, 1996, c. 21, s. 30] qualified construction equipment [Repealed, 1996, c. 21, s. 30] qualified expenditure incurred by a taxpayer in a taxation year means (a) an amount that is an expenditure incurred in the year by the taxpayer in respect of scientific research and experimental development and is (i) an expenditure described in subparagraph 37(1)(a)(i), (ii) 80% of an expenditure described in any of subparagraphs 37(1)(a)(i.01) to (iii), (iii) an expenditure for first term shared-use-equipment or second term shared-use-equipment, or (iv) an expenditure described in paragraph 37(1)(b), or (b) a prescribed proxy amount of the taxpayer for the year, but does not include (c) a prescribed expenditure incurred in the year by the taxpayer, (d) [Repealed, 2026, c. 3, s. 47] (e) [Repealed, 1998, c. 19, s. 33] (f) an expenditure (other than an expenditure that is salary or wages of an employee of the taxpayer) incurred by the taxpayer in respect of scientific research and experimental development to the extent that it is performed by another person or partnership at a time when the taxpayer and the person or partnership to which the expenditure is paid or payable do not deal with each other at arm’s length, (g) an expenditure described in paragraph 37(1)(a) that is paid or payable by the taxpayer to or for the benefit of a person or partnership that is not a taxable supplier in respect of the expenditure, other than an expenditure in respect of scientific research and experimental development directly undertaken by the taxpayer, and (h) an amount that would otherwise be a qualified expenditure incurred by the taxpayer in the year to the extent of any reduction in respect of the amount that is required under any of subsections 127(18) to 127(20) to be applied; ( dépense admissible ) qualified professional engineer or professional geoscientist means an individual who (a) is an engineer or geoscientist with a university degree, or equivalent accreditation, in an area of geoscience, or engineering, relating to mineral exploration or mining, (b) has at least five years of experience in mineral e