Petroleum and Gas Revenue Tax Act — P-12 6
Definition of “proceeds of disposition” 6 (1) In this section, proceeds of disposition has, subject to subsection (4), the same meaning as in section 13 of the Income Tax Act . Definition of “cumulative enhanced recovery capital expense” (2) For the purposes of subsection 5(8), cumulative enhanced recovery capital expense of a taxpayer in respect of a particular prescribed project at any time in a taxation year means the amount, if any, by which the aggregate of (a) the aggregate of all prescribed exploration and development expenses made or incurred by the taxpayer after 1982, before October 1986 and before that time in respect of the project, (b) the amount by which the capital cost to the taxpayer of each property that is prescribed enhanced recovery equipment acquired by the taxpayer after 1982, before October 1986 and before that time for use in the project exceeds any amount included therein that is in respect of financing, (c) the aggregate of all amounts in respect of the project required by paragraph 5(8)(b) to be included in computing the taxpayer’s production revenue for his taxation years ending before that time, and (d) any amount referred to in paragraph (f), (g) or (h) that is established by the taxpayer to have become a bad debt before October 1986 and before that time exceeds the aggregate of all amounts each of which is (e) any amount deductible by the taxpayer under paragraph 5(8)(a) for a taxation year ending before that time in respect of the project, (f) any amount that became receivable by the taxpayer before that time, as a result of a transaction that occurred after 1982 and before October 1986 for which the consideration given by the taxpayer was property, other than a share or Canadian resource property or an interest therein or a right thereto, or services, the original cost of which to the taxpayer may reasonably be regarded as having been an expense referred to in paragraph (a) in respect of the project, (g) any amount that is, in respect of a disposition before October 1986 and before that time of a property referred to in paragraph (b), the lesser of (i) the proceeds of disposition of the property minus any outlays and expenses to the extent that they were made or incurred by the taxpayer for the purpose of making the disposition, and (ii) the amount by which the capital cost to the taxpayer of the property exceeds any amount that is included therein that is in respect of financing, (h) any amount that became receivable by the taxpayer after 1982, before October 1986 and before that time, in respect of an expense referred to in paragraph (a) in respect of the project, from another person pursuant to an agreement between the taxpayer and that other person to unitize the field in which the project is located, (i) any amount received before October 1986 and before that time on account of any amount referred to in paragraph (d), (j) any amount of assistance or benefit that the taxpayer has received or is entitled to receive before that time in respect of any expense referred to in paragraph (a) in respect of the project, whether the amount is by way of grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit, or (k) any amount of assistance or benefit that the taxpayer has received or is entitled to receive before that time in respect of the cost of property referred to in paragraph (b) in respect of the project, whether the amount is by way of grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit, to the extent that the amount has not been deducted in determining the capital cost of the property. Where taxpayer member of partnership (3) For the purposes of subsection (2), where a taxpayer was a member of a partnership at the end of a fiscal period of the partnership, (a) any property acqui