Petroleum and Gas Revenue Tax Act — P-12 10
 be the production revenue for the year of the corporation, other than an amount, if any, included therein by virtue of subsection 5(5) or (5.1) or by virtue of the corporation being a member of a partnership, that may reasonably be attributed to the period in the year commencing after May 31, 1982, if (i) subsection 5(1) were read without reference to paragraph (c) thereof, (ii) the reference in paragraph 5(1)(d) to “paragraph (a), (b) or (c)” were read as a reference to “paragraph (a) or (b)”, and (iii) the reference to “a production royalty” in paragraph 5(1)(f) were read as a reference to “production royalty in respect of production of petroleum or gas of the corporation”; (b) the amount that would be the production revenue included in the income for the year of the corporation by virtue of the corporation being a member of a partnership that may reasonably be attributed to the period in the year commencing after the later of May 31, 1982 and the date the corporation first became a member of the partnership, if (i) subsection 5(1) were read without reference to paragraph (c) thereof, (ii) the reference in paragraph 5(1)(d) to “paragraph (a), (b) or (c)” were read as a reference to “paragraph (a) or (b)”, and (iii) the reference to “a production royalty” in paragraph 5(1)(f) were read as a reference to “production royalty in respect of production of petroleum or gas of the partnership”; (c) the amount that is deemed by subsection 5(5) to be production revenue of the corporation for the year; or (d) the lesser of (i) the amount by which the production revenue of the corporation for the year exceeds the aggregate of the amounts determined under paragraphs (a) to (c) in respect of the corporation for the year, and (ii) its royalty exemption limit for the year. Royalty exemption limit (6.1) For the purposes of subparagraph 10(6)(d)(ii), the royalty exemption limit of a corporation for a taxation year is that proportion of the corporation’s allocated exemption limit for the year that the number of days after 1985 and before October 1986 in the year is of three hundred and sixty-five. Allocated exemption limit (6.2) For the purposes of subsection (6.1), the allocated exemption limit of a corporation for a taxation year is (a) $2,000,000, where the corporation is not associated in the year with one or more other corporations; or (b) the amount allocated to the corporation under subsection (6.3) or (6.4), where the corporation is associated in the year with one or more other corporations. Allocation of exemption limit (6.3) The corporations in a group that, in a taxation year, are associated with each other may file with the Minister in prescribed form an agreement whereby, for the purpose of paragraph (6.2)(b), they allocate an amount to one or more of them for the year, which amount or the aggregate of which amounts, as the case may be, is $2,000,000. Failure to file agreement (6.4) If any of the corporations in a group referred to in subsection (6.3) fails to file with the Minister an agreement, as contemplated by that subsection, within thirty days after notice in writing by the Minister has been forwarded to any of them that such an agreement is required for the purpose of any assessment of tax for a taxation year under this Part, the Minister shall, for the purpose of paragraph (6.2)(b), allocate an amount to one or more of them for the year, which amount or the aggregate of which amounts, as the case may be, is $2,000,000. Other deduction by corporation (7) Where a taxpayer is a corporation, there may be deducted from the tax otherwise payable (computed without reference to subsection 9(5)) by it on its production revenue for a taxation year, an amount not exceeding 30% of the aggregate of the amounts added in computing its cumulative offset account within the meaning of subsection 66.5(2) of the Income Tax Act in the year pursuant to subsections 66(14.1) and (14.2) of that Act. R.S., 1985, c. P-12, s. 10; R.S., 1985, c. 2 (