Petroleum and Gas Revenue Tax Act — P-12 9
Amount of tax 9 (1) The tax payable under this Part in respect of a taxpayer for a taxation year, (a) where the taxation year ends in 1986, is the aggregate of (i) the aggregate of (A) 16% of the lesser of (I) that portion of the production revenue of the taxpayer for the year that may reasonably be attributed to a period in the year before 1986, and (II) the production revenue of the taxpayer for the year, and (B) 13.33% of the amount, if any, by which the production revenue of the taxpayer for the year exceeds the aggregate of (I) the lesser of the amounts determined under subclauses (A)(I) and (II), and (II) that portion of the synthetic production revenue of the taxpayer for the year that may reasonably be attributed to a period in the year after 1985, and (ii) 12% of the lesser of (A) the amount determined under subclause (i)(B)(II), and (B) the production revenue of the taxpayer for the year; and (b) where the taxation year ends after 1986, is the aggregate of (i) 13.33% of the lesser of (A) the amount, if any, by which the production revenue of the taxpayer for the year exceeds the synthetic production revenue of the taxpayer for the year, and (B) the production revenue of the taxpayer for the year, and (ii) 12% of the lesser of (A) the amount, if any, by which the production revenue of the taxpayer for the year exceeds the lesser of the amounts determined under clauses (i)(A) and (B), and (B) the synthetic production revenue of the taxpayer for the year. (c) and (d) [Repealed, R.S., 1985, c. 45 (2nd Supp.), s. 4] Partnership revenue (2) Where the production revenue of a taxpayer for a taxation year includes a share of a partnership’s production revenue and (a) the tax that would be payable under subsection (1) by the partnership on an amount equal to that share if the partnership were a person and its fiscal period were its taxation year, exceeds (b) the tax that would, but for this subsection, be payable under subsection (1) by the taxpayer for that taxation year of the taxpayer computed on the assumption that he had no income other than that share and was allowed no deduction under subsection 5(3.2) for the year, the excess shall be added to the tax otherwise payable by the taxpayer under this Part for the year. Trust revenue (3) Where a corporation has included an amount in computing its production revenue for a taxation year by virtue of subsection 5(5) or (5.1) and (a) the tax that the corporation is deemed by subsection 5(6) to have paid for the year in respect of that amount, exceeds (b) the tax that would, but for this subsection, be payable by the corporation for the year under subsection (1), computed on the assumption that the corporation had no income other than that amount, the excess shall be added to the tax otherwise payable by the corporation under this Part for the year. (4) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 6] Deduction (5) There may be deducted from the tax otherwise payable by a taxpayer on his production revenue for a taxation year, an amount not exceeding the exploration and development expense tax credit of that taxpayer at the end of the year. Definition of “exploration and development expense tax credit” (6) For the purposes of this section, exploration and development expense tax credit of a taxpayer at the end of a taxation year means the amount, if any, by which (a) the aggregate of all amounts each of which is an amount that the taxpayer (i) would have been eligible to receive in respect of outlays or expenses made or incurred by him before the end of the taxation year under a prescribed program of the Government of Canada or of a province providing incentives for the exploration for and development of petroleum and gas in Canada, and (ii) has waived his entitlement to receive, in accordance with the applicable provisions of that program, on or before the date he is required to file a return of production revenue pursuant to section 11 for the taxation year exceeds (b) the aggreg