Income Tax Act — I-3.3 66.7
of the cumulative Canadian development expense of the original owner determined immediately after the disposition; (d) in determining the cumulative Canadian oil and gas property expense of the original owner at any time after the time referred to in subparagraph 66.7(5)(a)(i), there shall be deducted the amount thereof determined immediately after the disposition; (d.1) for the purpose of paragraph 66.7(5)(a), the cumulative Canadian oil and gas property expense of the original owner determined immediately after the disposition that was deducted under subsection 66.4(2) in computing the original owner’s income for the year shall be deemed to be equal to the lesser of (i) the amount deducted under paragraph 66.7(12)(d) in respect of the disposition, and (ii) the amount, if any, by which (A) the specified amount determined under paragraph 66.7(12.1)(c) in respect of the original owner for the year exceeds (B) the total of all amounts determined under this paragraph in respect of any dispositions made by the original owner before the disposition and in the year; (d.2) for greater certainty, any amount (other than the amount determined under paragraph 66.7(12)(d.1)) that was deducted under subsection 66.4(2) by the original owner for the year or a subsequent taxation year shall, for the purpose of paragraph 66.7(5)(a), be deemed not to be in respect of the cumulative Canadian oil and gas property expense of the original owner determined immediately after the disposition; and (e) the drilling and exploration expenses, including all general geological and geophysical expenses, incurred by the original owner before 1972 on or in respect of exploring or drilling for petroleum or natural gas in Canada and the prospecting, exploration and development expenses incurred by the original owner before 1972 in searching for minerals in Canada shall, for the purposes of section 29 of the Income Tax Application Rules , be deemed after the disposition not to have been incurred by the original owner except for the purposes of making a deduction under that section for the year and of determining the amount that may be deducted under subsection 29(25) of that Act by the particular corporation or any other corporation that subsequently acquires any of the properties. Specified amount (12.1) Where in a taxation year an original owner of Canadian resource properties disposes of all or substantially all of the original owner’s Canadian resource properties in circumstances in which subsection 66.7(3), 66.7(4) or 66.7(5) applies, (a) the lesser of (i) the total of all amounts each of which is the amount, if any, by which (A) an amount deducted under paragraph 66.7(12)(b) in respect of a disposition in the year by the original owner exceeds (B) the amount, if any, designated by the original owner in prescribed form filed with the Minister within 6 months after the end of the year in respect of an amount determined under clause 66.7(12.1)(a)(i)(A), and (ii) the total of (A) the amount claimed under subsection 66.1(2) or 66.1(3) by the original owner for the year, and (B) the amount that would, but for paragraph 66.1(1)(c), be determined under subsection 66.1(1) in respect of the original owner for the year is the specified amount in respect of the original owner for the year for the purposes of clause 66.7(12)(b.1)(ii)(A) and of determining the value of E.1 in the definition cumulative Canadian exploration expense in subsection 66.1(6); (b) the lesser of (i) the total of all amounts each of which is the amount, if any, by which (A) an amount deducted under paragraph 66.7(12)(c) in respect of a disposition in the year by the original owner exceeds (B) the amount, if any, designated by the original owner in prescribed form filed with the Minister within 6 months after the end of the year in respect of an amount determined under clause 66.7(12.1)(b)(i)(A), and (ii) the total of (A) the amount claimed under subsection 66.2(2) by the original owner for the yea