Income Tax Act — I-3.3 (a)
cumulative Canadian exploration expense of a taxpayer at any time in a taxation year means the amount determined by the formula (A+B+C+D+E+E.1) - (F+G+H+I+J+J.1+K+L+M) where A is the total of all Canadian exploration expenses made or incurred by the taxpayer before that time, B is the total of all amounts that were, because of subsection (1), included in computing the amount referred to in paragraph 59(3.2)(b) for the taxpayer’s taxation years ending before that time, C is the total of all amounts, except amounts in respect of interest, paid by the taxpayer after May 6, 1974 and before that time to Her Majesty in right of Canada in respect of amounts paid to the taxpayer before May 25, 1976 under the regulations referred to in paragraph (a) of the description of H, D is the total of all amounts referred to in the description of G that are established by the taxpayer to have become bad debts before that time, E is such part, if any, of the amount determined for J as has been repaid before that time by the taxpayer pursuant to a legal obligation to repay all or any part of that amount, E.1 is the total of all specified amounts determined under paragraph 66.7(12.1)(a) in respect of the taxpayer for taxation years ending before that time, F is the total of all amounts deducted or required to be deducted in computing the taxpayer’s income for a taxation year ending before that time in respect of the taxpayer’s cumulative Canadian exploration expense, G is the total of all amounts that became receivable by the taxpayer before that time that are to be included in the amount determined under this description by virtue of paragraph 66(12.1)(a) or 66(12.2)(a), H is the total of all amounts paid to the taxpayer after May 6, 1974 and before May 25, 1976 (a) under the Northern Mineral Exploration Assistance Regulations made under an appropriation Act that provides for payments in respect of the Northern Mineral Grants Program, or (b) pursuant to any agreement entered into between the taxpayer and Her Majesty in right of Canada under the Northern Mineral Grants Program or the Development Program of the Department of Indian Affairs and Northern Development, to the extent that the amounts have been expended by the taxpayer as or on account of Canadian exploration and development expenses or Canadian exploration expense incurred by the taxpayer, I is the total of all amounts each of which is an amount received before that time on account of any amount referred to in the description of, J is the total amount of assistance that the taxpayer has received or is entitled to receive in respect of any Canadian exploration expense incurred after 1980 or that can reasonably be related to Canadian exploration activities after 1980, to the extent that the assistance has not reduced the taxpayer’s Canadian exploration expense by virtue of paragraph 66.1(9)(g), J.1 is the total of all amounts by which the cumulative Canadian exploration expense of the taxpayer is required because of subsection 80(8) to be reduced at or before that time, K is the total of all amounts that are required to be deducted before that time under subsection 66(14.1) in computing the taxpayer’s cumulative Canadian exploration expense, 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 , a pre-production mining expenditure , a flow-through mining expenditure or a flow-through critical mineral mining expenditure (each expenditure as defined in subsection 127(9)) made in a preceding taxation year, and M is the total of all amounts that are required to be deducted before that time under paragraph 66.7(12)(b) in computing the taxpayer’s cumulative Canadian exploration expense; ( frais cumulatifs d’exploration au Canada )