Income Tax Act — I-3.3 66
the taxpayer at a particular time from that other person in respect of Canadian oil and gas property expense incurred by the taxpayer in respect of that field or any part thereof, the following rules apply: (a) there shall, at that time, be included by the taxpayer in the amount determined for G in the definition cumulative Canadian oil and gas property expense in subsection 66.4(5) the amount that became receivable by the taxpayer; and (b) there shall, at that time, be included by the other person in the amount referred to in paragraph (a) of the definition Canadian oil and gas property expense in subsection 66.4(5) the amount that became payable by that person. Canadian exploration expenses to flow-through shareholder (12.6) If a person gave consideration under an agreement to a corporation for the issue of a flow-through share of the corporation and, in the period that begins on the day on which the agreement was made and ends 24 months after the end of the month that includes that day, the corporation incurred Canadian exploration expenses (other than an expense deemed by subsection 66.1(9) to be a Canadian exploration expense of the corporation), the corporation may, after it complies with subsection (12.68) in respect of the share and before March of the first calendar year that begins after the period, renounce, effective on the day on which the renunciation is made or on an earlier day set out in the form prescribed for the purpose of subsection (12.7), to the person in respect of the share the amount, if any, by which the portion of those expenses that was incurred on or before the effective date of the renunciation (which portion is in this subsection referred to as the “specified expenses”) exceeds the total of (a) the assistance that the corporation has received, is entitled to receive or can reasonably be expected to receive at any time, and that can reasonably be related to the specified expenses or to Canadian exploration activities to which the specified expenses relate (other than assistance that can reasonably be related to expenses referred to in any of paragraphs (b) to (b.2)), (b) all specified expenses that are prescribed Canadian exploration and development overhead expenses of the corporation, (b.1) all specified expenses each of which is a cost of, or for the use of, seismic data (i) that had been acquired (otherwise than as a consequence of performing work that resulted in the creation of the data) by any other person before the cost was incurred, (ii) in respect of which a right to use had been acquired by any other person before the cost was incurred, or (iii) all or substantially all of which resulted from work performed more than one year before the cost was incurred, (b.2) if the agreement is made after March 2023, all specified expenses that are not described in paragraph (b) or (b.1) and that would be Canadian exploration expenses if (i) the definition Canadian exploration expense in subsection 66.1(6) were read without reference to its paragraph (g.1), and (ii) the definition mineral resource in subsection 248(1) were read without reference to its paragraphs (a) and (d), and (c) the total of amounts that are renounced on or before the date on which the renunciation is made by any other renunciation under this subsection in respect of those expenses, but not in any case (d) exceeding the amount, if any, by which the consideration for the share exceeds the total of other amounts renounced under this subsection or subsection 66(12.601) or 66(12.62) in respect of the share on or before the day on which the renunciation is made, or (e) exceeding the amount, if any, by which the cumulative Canadian exploration expense of the corporation on the effective date of the renunciation computed before taking into account any amounts renounced under this subsection on the date on which the renunciation is made, exceeds the total of all amounts renounced under this subsection in respect of any other share (i)