Income Tax Application Rules — I-3.31 29
of oil or natural gas, may deduct, in computing its income for a taxation year, the lesser of (g) the total of such of (i) the drilling and exploration expenses, including all general geological and geophysical expenses incurred by it on or in respect of exploring or drilling for petroleum or natural gas in Canada, and (ii) the prospecting, exploration and development expenses incurred by it in searching for minerals in Canada, as were incurred after April 10, 1962 and before 1972, to the extent that they were not deductible in computing income for a preceding taxation year, and (h) of that total, an amount equal to its income for the taxation year if no deduction were allowed under this subsection or section 65, 66 or 66.1 of the amended Act minus the deductions allowed for the year under subsection 66(2) and sections 112 and 113 of the amended Act. Application of para. (4)(g) (5) In applying paragraph (4)(g) to a corporation described in paragraph (4)(f), the reference in paragraph (4)(g) to “April 10, 1962” shall be read as a reference to “June 13, 1963”. (6) to (8) [Repealed, 1997, c. 25, s. 73] Deduction from income from businesses of associations, etc. (9) There may be deducted in computing the income of a taxpayer for a taxation year from the businesses of all associations, partnerships or syndicates formed for the purpose of exploring or drilling for petroleum or natural gas and of which the taxpayer was a member or partner, the lesser of (a) the total of the taxpayer’s share of such of the drilling and exploration expenses, including all general geological and geophysical expenses, incurred by all those associations, partnerships or syndicates while the taxpayer was a member or partner thereof, on or in respect of exploring or drilling for petroleum or natural gas in Canada as were incurred after 1948 and before April 11, 1962, to the extent that they were not deductible in computing the taxpayer’s income for a preceding taxation year, and (b) of that total, an amount equal to the taxpayer’s income from the businesses of all those associations, partnerships or syndicates for the taxation year, computed before making any deduction under this section or section 65, 66 or 66.1 of the amended Act. Idem (10) There may be deducted in computing the income of a taxpayer for a taxation year from the businesses of all associations, partnerships or syndicates formed for the purpose of exploring or drilling for petroleum or natural gas and of which the taxpayer was a member or partner, the lesser of (a) the total of the taxpayer’s share of such of the drilling and exploration expenses, including all general geological and geophysical expenses incurred by all those associations, partnerships or syndicates while the taxpayer was a member or partner thereof, on or in respect of exploring or drilling for petroleum or natural gas in Canada as were incurred after April 10, 1962 and before 1972, to the extent that they were not deductible in computing the taxpayer’s income for a preceding taxation year, and (b) of that total, an amount equal to the taxpayer’s income from the businesses of all those associations, partnerships or syndicates for the taxation year computed before making any deduction under this section or section 65, 66 or 66.1 of the amended Act, minus the deduction allowed for the year under subsection (9) of this section. Deduction from income of corporation (11) A corporation, other than a corporation described in subsection (4), may deduct, in computing its income for a taxation year, the lesser of (a) the total of such of (i) the drilling and exploration expenses, including all general geological and geophysical expenses, incurred by it on or in respect of exploring or drilling for petroleum or natural gas in Canada, and (ii) the prospecting, exploration and development expenses incurred by it in searching for minerals in Canada, as were incurred after April 10, 1962 and before 1972, to the extend that they were not d