Income Tax Act — I-3.3 66.4
et royalty petroleum and natural gas lease that was in effect on March 31, 1977 to the extent that it can reasonably be regarded as a cost of acquiring the lease, (b) subject to section 66.8, the taxpayer’s share of any expense referred to in paragraph (a) incurred by a partnership in a fiscal period thereof at the end of which the taxpayer was a member of the partnership, unless the taxpayer elects in respect of the share in prescribed form and manner on or before the day that is 6 months after the taxpayer’s taxation year in which that period ends, or (c) any cost or expense referred to in paragraph (a) incurred by the taxpayer pursuant to an agreement in writing with a corporation, entered into before 1987, under which the taxpayer incurred the cost or expense solely as consideration for shares, other than prescribed shares, of the capital stock of the corporation issued to the taxpayer or any interest in or right to — or, for civil law, any right in or to — such shares, but for greater certainty, shall not include (d) any consideration given by the taxpayer for any share or any interest therein or right thereto, except as provided by paragraph (c), or (e) any expense described in paragraph (c) incurred by any other taxpayer to the extent that the expense was, (i) by virtue of that paragraph, a Canadian oil and gas property expense of that other taxpayer, (ii) by virtue of paragraph (i) of the definition Canadian exploration expense in subsection 66.1(6), a Canadian exploration expense of that other taxpayer, or (iii) by virtue of paragraph (g) of the definition Canadian development expense in subsection 66.2(5), a Canadian development expense of that other taxpayer, but any amount of assistance that a taxpayer has received or is entitled to receive in respect of or related to the taxpayer’s Canadian oil and gas property expense shall not reduce the amount of any of the expenses described in any of paragraphs (a) to (c); ( frais à l’égard de biens canadiens relatifs au pétrole et au gaz ) cumulative Canadian oil and gas property expense of a taxpayer at any time in a taxation year means the amount determined by the formula (A + B + C + D + D.1) - (E + F + G + H + I + I.1 + J) where A is the total of all Canadian oil and gas property expenses made or incurred by the taxpayer before that time, B is the total of all amounts determined under subsection 66.4(1) in respect of the taxpayer for taxation years ending before that time, C is the total of all amounts referred to in the description of F or G that are established by the taxpayer to have become bad debts before that time, D is such part, if any, of the amount determined for I as has been repaid before that time by the taxpayer pursuant to a legal obligation to repay all or any part of that amount, D.1 is the total of all specified amounts, determined under paragraph 66.7(12.1)(c) in respect of the taxpayer for taxation years ending before that time, E is the total of all amounts deducted in computing the taxpayer’s income for a taxation year ending before that time in respect of the taxpayer’s cumulative Canadian oil and gas property expense, F is the total of all amounts each of which is an amount in respect of property described in paragraph (a), (c) or (d) of the definition Canadian resource property in subsection 66(15) or any right to or interest in — or, for civil law, any right in or to — such a property, other than such a right or interest that the taxpayer has by reason of being a beneficiary under a trust or a member of a partnership, (in this description referred to as “the particular property”) disposed of by the taxpayer before that time equal to the amount, if any, by which (a) the amount, if any, by which the proceeds of disposition in respect of the particular property that became receivable by the taxpayer before that time exceed any outlays or expenses made or incurred by the taxpayer before that time for the purpose of making the disposition and that we