Petroleum and Gas Revenue Tax Act — P-12 5
 a taxation year is designated by the trust under subsection (5) or (5.1) in respect of a taxpayer, the amount of the tax paid by the trust on its production revenue for the year that may reasonably be considered to relate to the designated amount shall be deemed to have been paid by the taxpayer on account of the tax payable under this Part by the taxpayer on the production revenue of the taxpayer for the taxpayer’s taxation year in which the taxation year of the trust ended. (7) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 3] Income deductions and inclusions (8) For the purposes of computing the income of a taxpayer for a taxation year from a source referred to in paragraph (1)(a) or (b), (a) subject to subsection (9), there shall be deducted in respect of a particular prescribed project, the amount equal to the lesser of (i) the production revenue of the taxpayer for the year that may reasonably be attributable to the production after December 31, 1982 of petroleum or gas or the processing after December 31, 1982 of petroleum to any stage that is not beyond the stage of crude oil or its equivalent from a prescribed reservoir in which the project is located, computed on the assumption that for the year the taxpayer was allowed no deductions under paragraph (2)(e) or this paragraph, and (ii) the cumulative enhanced recovery capital expense of the taxpayer at the end of the year in respect of the project; and (b) there shall be included, in respect of a particular prescribed project, the amount, if any, by which (i) the aggregate of all amounts referred to in paragraphs 6(2)(e) to (k) that would be taken into account in computing the taxpayer’s cumulative enhanced recovery capital expense at the end of the year in respect of the project exceeds (ii) the aggregate of all amounts referred to in paragraphs 6(2)(a) to (d) that would be taken into account in computing the taxpayer’s cumulative enhanced recovery capital expense at the end of the year in respect of the project. Election respecting deductions (9) Where all taxpayers who (a) have made or incurred prescribed exploration and development expenses, (b) have acquired prescribed enhanced recovery equipment, or (c) are obligated to make or incur prescribed exploration and development expenses or to acquire prescribed enhanced recovery equipment, in respect of a prescribed project, jointly make a valid election not to make any deductions under paragraph (8)(a) in respect of the project, deductions shall not be made under that paragraph in respect of the project in computing the income of any taxpayer for any taxation year. Filing of election (10) An election referred to in subsection (9) in respect of a prescribed project is not valid unless it is made in prescribed form and is filed with the Minister on or before the earliest day on or before which any taxpayer who is required to join in the election is required under section 11 to file a return of production revenue for the taxation year in which the taxpayer first (a) makes or incurs a prescribed exploration and development expense, or (b) acquires prescribed enhanced recovery equipment, in respect of the project. Election binding on all interests (11) Where an election in respect of a prescribed project is filed in accordance with subsection (10), any taxpayer who at any time thereafter (a) makes or incurs prescribed exploration and development expenses, or (b) acquires prescribed enhanced recovery equipment, in respect of the project shall be deemed to have joined in the election and is bound by it. Late-filed request (12) Where, in the opinion of the Minister, the circumstances of a case are such that it would be just and equitable to permit an election to be filed under subsection (10) after the day on or before which it is required by that subsection to be filed, the Minister may permit the election to be filed after that day and, where the election is filed pursuant to the permission, the election shall be deemed to ha