Income Tax Act — I-3.3 66.1
referred to in the description of E, G or J, as the case may be, in that definition in respect of the taxpayer for the taxation year of the taxpayer in which the partnership’s taxation year ends. (8) [Repealed, 1997, c. 25, s. 14(6)] Canadian development expenses for preceding years (9) Where at any time in a taxpayer’s taxation year (a) the drilling or completing of an oil or gas well resulted in the discovery that a natural underground reservoir contains petroleum or natural gas and, before the time of the discovery, no person or partnership had discovered that the reservoir contained either petroleum or natural gas, (b) the period of 24 months commencing on the day of completion of the drilling of an oil or gas well ends and the well has not, within that period, produced otherwise than for specified purposes, or (c) an oil or gas well that has never produced, otherwise than for specified purposes, is abandoned, the amount, if any, by which the total of (d) all Canadian development expenses (other than restricted expenses) described in subparagraph (a)(ii) of the definition Canadian development expense in subsection 66.2(5) in respect of the well that are deemed by subsection 66(10.2) or 66(12.63) to have been incurred by the taxpayer in the year or a preceding taxation year, (e) all Canadian development Canadian development expenses (other than restricted expenses) described in subparagraph (a)(ii) of the definition Canadian development expense in subsection 66.2(5) in respect of the well that are required by paragraph 66(12.3)(b) to be included by the taxpayer in the amount referred to in paragraph (a) of that definition for the year or a preceding taxation year, and (f) all Canadian development expenses described in subparagraph (a)(ii) of the definition Canadian development expense in subsection 66.2(5) incurred by the taxpayer in respect of the well in a taxation year preceding the year, other than (i) expenses referred to in paragraph (d) or (e), (ii) restricted expenses, and (iii) expenses for a well referred to in paragraph (a) that are incurred (A) after 2020 (including expenses that are deemed by subsection 66(12.66) to have been incurred on December 31, 2020), if the expenses are incurred in connection with an obligation that was committed to in writing (including a commitment to a government under the terms of a licence or permit) by the taxpayer before March 22, 2017, and (B) after 2018 (including expenses that are deemed by subsection 66(12.66) to have been incurred on December 31, 2018), in any other case, exceeds (g) any assistance that the taxpayer or a partnership of which the taxpayer is a member has received or is entitled to receive in respect of the expenses referred to in any of paragraphs 66.1(9)(d) to 66.1(9)(f), shall, for the purposes of this Act, be deemed to be a Canadian exploration expense referred to in paragraph (e) of the definition Canadian exploration expense in subsection 66.1(6) incurred by the taxpayer at that time. Certificate ceasing to be valid (10) A certificate in respect of an oil or gas well issued by the Minister of Natural Resources for the purposes of subparagraph (d)(iv) of the definition Canadian exploration expense in subsection 66.1(6) shall be deemed never to have been issued and never to have been filed with the Minister where (a) the well produces, otherwise than for a specified purpose, within the period of 24 months commencing on the day on which the drilling of the well was completed; or (b) in applying for the certificate, the applicant, in any material respect, provided any incorrect information or failed to provide information. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 66.1; 1994, c. 7, Sch. II, s. 39, c. 8, s. 6, c. 41, par. 37(1)(o); 1995, c. 21, s. 22; 1997, c. 25, s. 14; 2001, c. 17, s. 45; 2003, c. 28, s. 5; 2011, c. 24, s. 14; 2013, c. 34, ss. 112, 20