Income Tax Act — I-3.3 66
unt, except an amount in respect of interest, paid by the taxpayer after 1971 and before May 7, 1974 under the Regulations referred to in subparagraph 66(12)(a)(i) to Her Majesty in right of Canada. Limitations of Canadian exploration and development expenses (12.1) Except as expressly otherwise provided in this Act, (a) if as a result of a transaction occurring after May 6, 1974 an amount has become receivable by a taxpayer at a particular time in a taxation year and the consideration given by the taxpayer therefor was property (other than a share or a Canadian resource property, or an interest in or a right to — or, for civil law, a right in or to — the share or the property) or services, the original cost of which to the taxpayer may reasonably be regarded as having been primarily Canadian exploration and development expenses of the taxpayer (or would have been so regarded if they had been incurred by the taxpayer after 1971 and before May 7, 1974) or a Canadian exploration expense, there shall at that time be included in the amount determined for G in the definition cumulative Canadian exploration expense in subsection 66.1(6) in respect of the taxpayer the amount that became receivable by the taxpayer at that time; and (b) if as a result of a transaction occurring after May 6, 1974 an amount has become receivable by a taxpayer at a particular time in a taxation year and the consideration given by the taxpayer therefor was property (other than a share or a Canadian resource property, or an interest in or a right to — or, for civil law, a right in or to — the share or the property) or services, the original cost of which to the taxpayer may reasonably be regarded as having been primarily a Canadian development expense, there shall at that time be included in the amount determined for G in the definition cumulative Canadian development expense in subsection 66.2(5) in respect of the taxpayer the amount that became receivable by the taxpayer at that time. Unitized oil or gas field in Canada (12.2) Where, pursuant to an agreement between a taxpayer and another person to unitize an oil or gas field in Canada, an amount has become receivable by the taxpayer at a particular time after May 6, 1974 from that other person in respect of Canadian exploration expense incurred by the taxpayer or Canadian exploration and development expenses incurred by the taxpayer (or expenses that would have been Canadian exploration and development expenses if they had been incurred by the taxpayer after 1971 and before May 7, 1974) 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 exploration expense in subsection 66.1(6) 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 (c) of the definition Canadian exploration expense in subsection 66.1(6) the amount that became payable by that person. Idem (12.3) Where, pursuant to an agreement between a taxpayer and another person to unitize an oil or gas field in Canada, an amount has become receivable by the taxpayer at a particular time after May 6, 1974 from that other person in respect of Canadian development 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 development expense in subsection 66.2(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 development expense in subsection 66.2(5) the amount that became payable by that person. Limitation of FEDE (12.4) Where, as a result of a transaction that occurs after May 6, 1974, an amount