Income Tax Act — I-3.3 66
ction 66.8, the taxpayer’s share of the specified foreign exploration and development expenses of a partnership incurred in respect of that country in a fiscal period of the partnership if, at the end of that period, the taxpayer was a member of the partnership. ( frais d’exploration et d’aménagement à l’étranger déterminés ) Other definitions (15.1) The definitions in subsections 66.1(6), 66.2(5), 66.21(1), 66.4(5) and 66.5(2) apply in this section. Partnerships (16) For the purposes of subsections 66(12.6) to 66(12.73), the definitions assistance and flow-through share in subsection 66(15) and subsections 66(18), 66(19) and 66.3(3) and 66.3(4), a partnership is deemed to be a person and its taxation year is deemed to be its fiscal period. Non-arm’s length partnerships (17) For the purpose of paragraph (12.66)(d), a partnership and a corporation are, at all times in a calendar year, (a) deemed not to deal with each other at arm’s length, if (i) an expense is deemed by subsection (12.61) to be incurred by the partnership, (ii) the expense would, if this Act were read without reference to paragraph (12.61)(b), be incurred in the calendar year by the corporation, and (iii) a share of the expense is included, because of paragraph (h) of the definition Canadian exploration expense in subsection 66.1(6), in the Canadian exploration expense of the corporation or of a member of the partnership with whom the corporation, at any time in that calendar year, does not deal at arm’s length; and (b) deemed to deal with each other at arm’s length, in any other case. Members of partnerships (18) For the purposes of this section, subsection 21(2), sections 59.1 and 66.1 to 66.7, paragraph (d) of the definition investment expense in subsection 110.6(1), the definition pre-production mining expenditure in subsection 127(9) and the descriptions of C and D in subsection 211.91(1), where a person’s share of an outlay or expense made or incurred by a partnership in a fiscal period of the partnership is included in respect of the person under paragraph (d) of the definition foreign exploration and development expenses in subsection (15), paragraph (h) of the definition Canadian exploration expense in subsection 66.1(6), paragraph (f) of the definition Canadian development expense in subsection 66.2(5), paragraph (e) of the definition foreign resource expense in subsection 66.21(1) or paragraph (b) of the definition Canadian oil and gas property expense in subsection 66.4(5), the portion of the outlay or expense so included is deemed, except for the purposes of applying the definitions foreign exploration and development expenses , Canadian exploration expense , Canadian development expense , foreign resource expense and Canadian oil and gas property expense in respect of the person, to be made or incurred by the person at the end of that fiscal period. Renunciation by corporate partner, etc. (19) A corporation is not entitled to renounce under subsection 66(12.6), 66(12.601) or 66(12.62) to a person a specified amount in respect of the corporation where the corporation would not be entitled to so renounce the specified amount if (a) the expression “end of that fiscal period” in subsection 66(18) were read as “time the outlay or expense was made or incurred by the partnership”; and (b) the expression “on the effective date of the renunciation” in each of paragraphs 66(12.61)(a) and 66(12.63)(a) were read as “at the earliest time that any part of such expense was incurred by the corporation”. Specified amount (20) For the purpose of subsection 66(19), a specified amount in respect of a corporation is an amount that represents (a) all or part of the corporation’s share of an outlay or expense made or incurred by a partnership of which the corporation is a member or former member; or (b) all or part of an amount renounced to the corporation under subsection 66(12.6), 66(12.601) or 66(12.62). Lithium brine well (21) For the purposes of paragraph (f) of th