Petroleum and Gas Revenue Tax Act — P-12 2
lared to have the force of law thereunder, a tax imposed under this Act shall, for all purposes, be deemed not to be an income or profits tax, a surtax or an excess profits tax. Associated corporations (6) For the purposes of this Act, one corporation is associated with another corporation in a taxation year if (a) the corporations are associated with each other in the year by virtue of a direction made under subsection 247(2) of the Income Tax Act ; or (b) the corporations would be associated with each other in the year by virtue of section 256 of the Income Tax Act , if the references in paragraphs (1)(c) to (e) thereof to “capital stock thereof” were read as references to “capital stock thereof, or had an equity percentage (within the meaning of paragraph 95(4)(b)) in each corporation of not less than 10%”. Deeming of association (7) Where, in the case of two or more corporations, the Minister is satisfied (a) that (i) the separate existence of the corporations in a taxation year is not solely for the purpose of carrying out the business of the corporations in the most effective manner, and (ii) one of the main reasons for the separate existence in the year is to reduce the amount of tax that would be payable under this Act, or (b) that the corporations have at any time entered into an agreement or transaction that lacks any substantial business purpose other than to increase the aggregate deduction from tax allowed to the corporations under subsection 10(1) in a taxation year, the corporations shall, if the Minister so directs, be deemed, for the purposes of this Act, to be associated with each other in the year. Idem (8) Where two corporations are associated by virtue of subsection (6) or (7), or are deemed by this subsection to be associated with the same corporation at the same time, they shall, for the purposes of this Act, be deemed to be associated with each other. Deeming of non-association (9) Where all the shares and rights to acquire shares of the capital stock of a corporation are owned directly or indirectly by one or more registered pension funds or plans and the corporation would, but for this subsection, be associated with another corporation in a taxation year under paragraph (6)(b) by reason that the corporations are controlled by the same trustee or trustees, the corporations shall be deemed not to be associated with each other in the year unless one of the main reasons for the separate existence of  the corporations in the year is to reduce the amount of tax that would  otherwise be payable under this Act. Appeal (10) On an appeal from an assessment made pursuant to a direction of the Minister under subsection (7), the Tax Court of Canada may (a) confirm the direction; (b) vacate the direction if (i) in the case of a direction under paragraph (7)(a), it determines that none of the main reasons for the separate existence of the corporations was to reduce the amount of tax payable under this Act, or (ii) in the case of a direction under paragraph (7)(b), it determines that the agreement or transaction referred to in that paragraph had a substantial business purpose, other than to increase the aggregate deduction from tax allowed under subsection 10(1); or (c) vary the direction and refer the matter back to the Minister for reassessment. Certification of prescribed project (11) The Minister of Natural Resources shall not certify (a) a project for the purposes of paragraph (a) of the definition “approved recovery project” in subsection (1) unless a request for the certification is filed with the Minister of Natural Resources within 180 days after the project commenced operations; or (b) a prescribed project to have commenced operations after 1982 for the purposes of paragraph (b) of the definition “approved recovery project” in subsection (1) unless a joint election made under subsection 5(9) in respect of the project has been filed with the Minister of National Revenue in accordance with subsection 5(10). L