Income Tax Regulations — 1204
 as is described in clause (b)(ii)(A), (B) or (C), exceeds the aggregate of the taxpayer’s losses for the year from the sources described in paragraph (b), where the taxpayer’s incomes and losses are computed in accordance with the Act on the assumption that the taxpayer had during the year no incomes or losses except from those sources and was allowed no deductions in computing the taxpayer’s income for the year other than (d) amounts deductible under section 66 of the Act (other than amounts in respect of foreign exploration and development expenses) or subsection 17(2) or (6) or section 29 of the Income Tax Application Rules , for the year; (e) the amounts deductible or deducted, as the case may be, under section 66.1, 66.2 (other than an amount that is in respect of a property described in clause 66(15)(c)(ii)(A) of the Act), 66.4, 66.5 or 66.7 (other than subsection (2) thereof) of the Act for the year; and (f) any other deductions for the year that can reasonably be regarded as applicable to the sources of income described in paragraph (b) or (b.1), other than a deduction under paragraph 20(1)(ss) or (tt) of the Act or section 1201 or subsection 1202(2), 1203(1), 1207(1) or 1212(1). (1.1) For the purposes of this Part, resource profits of a taxpayer for a taxation year means the amount, if any, by which the taxpayer’s gross resource profits for the year exceeds the total of (a) all amounts deducted in computing the taxpayer’s income for the year other than (i) an amount deducted in computing the taxpayer’s gross resource profits for the year, (ii) an amount deducted under any of section 8, paragraphs 20(1)(ss) and (tt), sections 60 to 64 and subsections 66(4), 66.7(2) and 104(6) and (12) of the Act and section 1201 and subsections 1202(2), 1203(1), 1207(1) and 1212(1) in computing the taxpayer’s income for the year, (iii) an amount deducted under section 66.2 of the Act in computing the taxpayer’s income for the year, to the extent that it is attributable to any right, licence or privilege to store underground petroleum, natural gas or related hydrocarbons in Canada, (iv) an amount deducted in computing the taxpayer’s income for the year from a business, or other source, that does not include any resource activity of the taxpayer, and (v) an amount deducted in computing the taxpayer’s income for the year, to the extent that the amount (A) relates to an activity (I) that is not a resource activity of the taxpayer, and (II) that is 1 the production, processing, manufacturing, distribution, marketing, transportation or sale of any property, 2 carried out for the purpose of earning income from property, or 3 the rendering of a service by the taxpayer to another person for the purpose of earning income of the taxpayer, and (B) does not relate to a resource activity of the taxpayer, (b) all amounts each of which is the amount, if any, by which (i) the amount that would have been charged to the taxpayer by a person or partnership with whom the taxpayer was not dealing at arm’s length if the taxpayer and that person or partnership had been dealing at arm’s length (A) for the use after March 6, 1996 and in the year of a property (other than money) owned by that person or partnership, or (B) for the provision after March 6, 1996 and in the year by that person or partnership of a service to the taxpayer exceeds the total of (ii) the amount charged to the taxpayer for the use of that property or the provision of that service in that period, and (iii) the portion of the amount described in subparagraph (i) that, if it had been charged, would not have been deductible in computing the taxpayer’s resource profits, and (c) where the year ends after February 21, 1994, all amounts added under subsection 80(13) of the Act in computing the taxpayer’s gross resource profits for the year. (1.2) For the purposes of paragraph (1.1)(b) and this subsection, (a) a taxpayer is considered not to deal at arm’s length with a partnership where the taxpa