Income Tax Application Rules — I-3.31 29
Deduction from income of petroleum or natural gas corporation 29 (1) A corporation whose principal business is production, refining or marketing of petroleum, petroleum products or natural gas or exploring or drilling for petroleum or natural gas may deduct, in computing its income for a taxation year, the lesser of (a) the total of such of the drilling and exploration expenses, including all general geological and geophysical expenses, incurred by it on or in respect of exploring or drilling for petroleum or natural gas in Canada as were incurred during the calendar years 1949 to 1952, to the extent that they were not deductible in computing income for a preceding taxation year, and (b) of that total, an amount equal to its income for the taxation year if no deduction were allowed under this section or section 65, 66 or 66.1 of the amended Act minus the deductions allowed for the year under subsections (9), (10) and (25) of this section and sections 112 and 113 of the amended Act. Deduction from income of mining corporation (2) A corporation whose principal business is mining or exploring for minerals may deduct, in computing its income for a taxation year, the lesser of (a) the total of such of the prospecting, exploration and development expenses incurred by it in searching for minerals in Canada as were incurred during 1952, to the extent that they were not deductible in computing income for a preceding taxation year, and (b) of that total, an amount equal to its income for the taxation year if no deduction were allowed under this section or section 65, 66 or 66.1 of the amended Act minus the deductions allowed for the year under subsections (9), (10) and (25) of this section and sections 112 and 113 of the amended Act, if the corporation has filed certified statements of those expenses and has satisfied the Minister that it has been actively engaged in prospecting and exploring for minerals in Canada by means of qualified persons and has incurred the expenses for those purposes. Deduction from income of petroleum or natural gas corporation or mining corporation (3) A corporation whose principal business is (a) production, refining or marketing of petroleum, petroleum products or natural gas, or exploring or drilling for petroleum or natural gas, or (b) mining or exploring for minerals, may deduct, in computing its income for a taxation year, the lesser of (c) the total of such of (i) the drilling and exploration expenses, including all general geological and geophysical expenses, incurred by it on or in respect of exploring or drilling for petroleum or natural gas in Canada, and (ii) the prospecting, exploration and development expenses incurred by it in searching for minerals in Canada, as were incurred after 1952 and before April 11, 1962, to the extent that they were not deductible in computing income for a preceding taxation year, and (d) of that total, an amount equal to its income for the taxation year if no deduction were allowed under this section or section 65, 66 or 66.1 of the amended Act minus the deductions allowed for the year under subsections (1), (2), (9), (10) and (25) of this section and sections 112 and 113 of the amended Act. Deduction from income of petroleum corporation, etc. (4) A corporation whose principal business is (a) production, refining or marketing of petroleum, petroleum products or natural gas, or exploring or drilling for petroleum or natural gas, (b) mining or exploring for minerals, (c) processing mineral ores for the purpose of recovering metals therefrom, (d) a combination of (i) processing mineral ores for the purpose of recovering metals therefrom, and (ii) processing metals recovered from the ores so processed, (e) fabricating metals, or (f) operating a pipeline for the transmission of oil or natural gas, may deduct, in computing its income for a taxation year, the lesser of (g) the total of such of (i) the drilling and exploration expenses, including all general geological and g