Income Tax Act — I-3.3 126
s computed by reference to the amount by which (i) the amount or value of petroleum, natural gas or related hydrocarbons produced or extracted by the taxpayer in the course of carrying on the business in the year exceeds (ii) an allowance or other deduction that (A) is deductible, under the agreement or law that creates the obligation described in paragraph (a), in computing the amount receivable by the government of the country, and (B) is intended to take into account the taxpayer’s operating and capital costs of that production or extraction, and can reasonably be considered to have that effect, (c) would not, if this Act were read without reference to subsection (5), be an income or profits tax, and (d) is not identified as a royalty under the agreement that creates the obligation or under any law of the country; ( impôt sur la production ) qualifying incomes of a taxpayer from sources in a country means incomes from sources in the country, determined in accordance with subsection (9); ( revenus admissibles ) qualifying losses of a taxpayer from sources in a country means losses from sources in the country, determined in accordance with subsection (9); ( pertes admissibles ) related transactions , in respect of a taxpayer’s ownership of a property for a period, means transactions entered into by the taxpayer as part of the arrangement under which the property was owned; ( opérations connexes ) tax-exempt income means income of a taxpayer from a source in a country in respect of which (a) the taxpayer is, because of a tax treaty with that country, entitled to an exemption from all income or profits taxes, imposed in that country, to which the treaty applies, and (b) no income or profits tax to which the treaty does not apply is imposed in any country other than Canada; ( revenu exonéré d’impôt ) tax for the year otherwise payable under this Part by a taxpayer means (a) in paragraph (1)(b) and subsection (3), the amount determined by the formula A - B where A is the amount that would be the tax payable under this Part for the year by the taxpayer if that tax were determined without reference to section 120.3 and before making any deduction under any of sections 121, 122.3, 125 to 127.41 and, if the taxpayer is a Canadian-controlled private corporation throughout the year, section 123.4, and B is the amounts deemed by subsections 120(2) and (2.2) to have been paid on account of tax payable under this Part by the taxpayer, (b) in subparagraph (2)(c)(i) and paragraph (2.2)(b), the amount that would be the tax payable under this Part for the year by the taxpayer if that tax were determined without reference to sections 120.3 and 123.3 and before making any deduction under any of sections 121 and 122.3, subsection 123.4(3), and sections 124 to 127.41, and (c) in subsection (2.1), the amount that would be the tax payable under this Part for the year by the taxpayer if that tax were determined without reference to subsection 120(1) and sections 120.3 and 123.3 and before making any deduction under any of sections 121 and 122.3, subsection 123.4(3) and sections 124 to 127.41; ( impôt payable par ailleurs pour l’année en vertu de la présente partie ) taxing country means a country (other than Canada) the government of which regularly imposes, in respect of income from businesses carried on in the country, a levy or charge of general application that would, if this Act were read without reference to subsection (5), be an income or profits tax; ( pays taxateur ) unused foreign tax credit of a taxpayer in respect of a country for a taxation year means the amount, if any, by which (a) the business-income tax paid by the taxpayer for the year in respect of businesses carried on by the taxpayer in that country exceeds (b) the amount, if any, deductible under subsection (2) in respect of that country in computing the taxpayer’s tax payable under this Part for the year. ( fraction inutilisée du crédit pour impôt étranger ) Deemed dividend —