Income Tax Regulations — 1206
extent that it is not reasonably attributable to the use of a property by, the performance of a service for, or any materials, parts, or supplies acquired by, the taxpayer referred to in that definition, and (iii) an amount in respect of the capital cost to the person of a property, other than, where the property is a depreciable property of the person, that proportion of the capital allowance of the person for his taxation year in respect of the property that may reasonably be considered attributable to the use of the property by, or in the performance of a service for, the taxpayer referred to in that definition. (6) For the purpose of subparagraph (5)(b)(iii), the capital allowance of a person (in this subsection referred to as the “owner”) for his taxation year in respect of a property owned by him means that proportion of an amount not exceeding 20 per cent of the amount that is (a) in the case of a property owned by the owner on December 31, 1980, the lesser of (i) the capital cost of the property to the owner computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, and (ii) the fair market value of the property on December 31, 1980, (b) in the case of a property acquired by the owner after December 31, 1980 that was previously owned by a person connected with the owner, the lesser of (i) the capital cost of the property, computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, to the person, who was connected with the owner, who was the first person to acquire the property from a person with whom the owner was not connected, and (ii) the fair market value of the property at the time it was acquired by the owner, and (c) in any other case, the capital cost of the property to the owner computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that the number of days in the taxation year during which the property was owned by the owner is of 365. (7) For the purposes of paragraph (5)(a), equity percentage has the meaning assigned by paragraph 95(4)(b) of the Act. (8) For the purposes of the definition qualified tertiary oil recovery project in subsection (1), a specified royalty provision means: (a) the Experimental Project Petroleum Royalty Regulation of Alberta (Alta. Reg. 36/79); (b) The Experimental Oil Sands Royalty Regulations of Alberta (Alta. Reg. 287/77); (c) section 4.2 of the Petroleum Royalty Regulations of Alberta (Alta. Reg. 93/74); (d) section 58A of the Petroleum and Natural Gas Regulations, 1969 of Saskatchewan (Saskatchewan Regulation 8/69); (e) section 204 of The Freehold Oil And Gas Production Tax Regulations, 1983 of Saskatchewan (Saskatchewan Regulation 11/83); (f) item 9 of section 2 of the Petroleum and Natural Gas Royalty Regulations of British Columbia (B.C. Reg. 549/78); (g) the Freehold Mineral Taxation Act of Alberta; (h) the Freehold Mineral Rights Tax Act of Alberta; (i) Order in Council 427/84 pursuant to section 9(a) of the Mines and Minerals Act of Alberta; (j) Order in Council 966/84 pursuant to section 9 of the Mines and Minerals Act of Alberta; or (k) Order in Council 870/84 pursuant to section 9 of the Mines and Minerals Act of Alberta. (8.1) For the purpose of paragraph (a) of the definition qualified tertiary oil recovery project in subsection (1), a specified royalty provision is deemed to apply as of a particular time if, at the particular time, unconditional approval for the specified royalty provision to apply at a time after the particular time is given by (a) Her Majesty in right of Canada or of a province; (b) an agent of Her Majesty in right of Canada or of a province; or (c) a corporation, a commission or an association that is controlled by Her