101. (1) In this Part, “Canadian exploration and development expense” has the meaning given to that expression by subsection 18 (15) of the Act; “Canadian exploration and development expenses incurred in oil or gas operations” means that part of the corporation’s Canadian exploration and development expenses that is, (a) a drilling or exploration expense, including any general geological or geophysical expense incurred on or in respect of exploring or drilling for petroleum or natural gas in Canada, (b) an expenditure incurred for the purpose of, (i) exploration in respect of, or (ii) development of, a petroleum deposit for the purpose of gaining or producing income from the extraction of material from such deposit, or (c) the cost of a Canadian oil or gas resource property; “Canadian exploration and development overhead expense” means an expense described in subsections 1206 (1), (5), (6) and (7) of the regulations made under the Income Tax Act
(Canada); “Canadian fossil fuel source” means, (a) a natural accumulation of petroleum or natural gas in Canada that is not a mineral resource in Canada, (b) an oil or gas well in Canada, or (c) a bituminous sands deposit or oil shale deposit that is a mineral resource in Canada; “Canadian oil and gas exploration expense” means an expense so described in subsection 1206 (1) of the regulations made under the Income Tax Act (Canada); “Canadian oil or gas resource property” means a Canadian resource property, (a) that is described in paragraph (a), subparagraph (b) (i) or paragraph (c) or (d) of the definition of “Canadian resource property” in subsection 66 (15) of the Income Tax Act (Canada), (b) that would be property described in subparagraph (b) (ii) or paragraph (e) or (f) of that definition if the only mineral resource referred to in that subparagraph or paragraph were a petroleum deposit, or (c) that is a right to or interest in any property described in clause (a) or (b); “Canadian resource property” has the meaning given to that expression by subsection 66 (15) of the Income Tax Act (Canada); “Crown entity” means a person referred to in subclause 11.0.1 (3) (a) (i), (ii) or (iii) of the Act; “earned depletion base” of a corporation as of a particular time means the amount by which 331/3 per cent of the aggregate of, (a) three times its earned depletion base as at the end of its last taxation year ending before the 20th day of April, 1977, as determined under subsection (2), (b) all amounts, in respect of expenditures (other than expenditures to acquire property in circumstances that entitled the corporation to a deduction under section 1202 of the regulations made under the Income Tax Act (Canada), as that section applies for the purposes of subsection 104 (2), or would entitle the corporation to such a deduction if the amounts referred to in paragraphs 1202 (2) (a) and (b) of those regulations were sufficient for the purpose) each of which was, (i) a Canadian exploration and development expense incurred in oil or gas operations other than, (A) a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was a Canadian exploration and development expense or an exploration, prospecting and development expense, as the case may be, of the corporation, (B) the cost to it of any Canadian oil or gas resource property acquired by it, (C) a
Canadian exploration and development expense that was incurred after a petroleum deposit had come into production in reasonable commercial quantities and may reasonably be considered to be related to the petroleum deposit or to a potential or actual extension thereof, (D) a
Canadian exploration and development expense which has been renounced by the corporation under subsection 18 (5) of the Act, (E) an amount that, by virtue of clause (d) of the definition of “Canadian exploration and development expenses” in subsection 18 (15) of the Act was a Canadian exploration and development expense, if such amount was a cost or expense referred to in sub-subclause (A), (B), (C) or (D) that was incurred by an association, partnership or syndicate referred to in the said clause (d), or (F) an amount that by virtue of clause (e) of the definition of “Canadian exploration and development expenses” in subsection 18 (15) of the Act was a Canadian exploration and development expense, if such amount was a cost or expense referred to in sub-subclause (A), (B), (C) or (D) that the corporation incurred pursuant to an agreement referred to in the said clause (e), (ii) the stated percentage of a Canadian exploration expense incurred after May 19, 1981 which qualifies for the purposes of subparagraph 1205 (1) (a) (ii) of the regulations made under the Income Tax Act (Canada) and was incurred in connection with oil or gas exploration, (iii) the specified percentage of a Canadian oil and gas exploration expense incurred after 1980 and before 1984 which qualifies for the purposes of subparagraph 1205 (1) (a) (v) of the regulations made under the Income Tax Act
(Canada), (iv) the stated percentage of an expenditure incurred by the corporation that qualifies for the purposes of subparagraph 1205 (1) (a) (vi) of the regulations made under the Income Tax Act (Canada) other than clause (A) thereof or that portion of an expenditure incurred by the corporation that qualifies for the purposes of clause 1205 (1) (a) (vi) (A) of the regulations made under the Income Tax Act (Canada), Note:  Clause (b), as amended by O. Reg. 355/98, s. 10 (1-3), applies to corporations for taxation years ending after February 17, 1987.  See:  O. Reg. 355/98, s. 10 (8). (c) the stated percentage of all expenditures that qualify for the purposes of paragraphs 1205 (1) (b) and (c) of the regulations made under the Income Tax Act
(Canada) that were incurred by the corporation in connection with a petroleum deposit, Note:  Clause (c), as amended by O. Reg. 355/98, s. 10 (4, 5), applies to corporations for taxation years ending after February 17, 1987, except that paragraph 1205 (1) (c) of the regulations made under the Income Tax Act (Canada), as it applies for the purpose of clause (c) of the definition of “earned depletion base” shall, in its application to a taxation year ending before 1988, be read without reference to the words “or paragraph (a) of Class 41”.  See:  O. Reg. 355/98, s. 10 (8). (d) three times the total of all amounts each of which is an amount equal to the lesser of, (i) the amount that would be determined under subsection 108 (1) in computing the corporation’s income for a taxation year that ends before the particular time, determined on the basis that the corporation had no profits from mining operations and that the amount determined to be “C” in the formula in subsection 108 (1) were nil, and (ii) the amount determined to be “C” in the formula in subsection 108 (1) in respect of the corporation for that year, and Note:  Clause (d), as remade by O. Reg. 355/98, s. 24 (1), applies to corporations for taxation years ending after December 20, 1991.  See:  O. Reg. 355/98, s. 24 (5). (d.1) three times the aggregate of all amounts each of which is the specified amount determined under subsection 1202 (4) of the regulations made under the Income Tax Act
(Canada), as made applicable by subsection 104 (2), in respect of the corporation for a taxation year ending after February 17, 1987 and before the particular time, Note:  Clause (d.1), as made by O. Reg. 355/98, s. 10 (5), applies to corporations for taxation years ending after February 17, 1987.  See:  O. Reg. 355/98, s. 10 (8). exceeds the aggregate of, (e) all amounts deducted by the corporation under subsection 103 (1) in computing its income for all taxation years ending after April 19, 1977 and before the particular time, Note:  Clause (e), as remade by O. Reg. 355/98, s. 10 (6), applies to corporations for taxation years ending after February 17, 1987.  See:  O. Reg. 355/98, s. 10 (8). (f) 331/3 per cent of the aggregate of all amounts each of which is the stated percentage of a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, that was included in the capital cost to it of depreciable property described in subclause (b) (iv) or clause (c), Note:  Clause (f), as remade by O. Reg. 355/98, s. 10 (6), applies to corporations for taxation years ending after February 17, 1987.  See:  O. Reg. 355/98, s. 10 (8). (g) 33 1/3 per cent of the aggregate of all amounts, each of which is an amount that became receivable by the corporation after April 28, 1978 and before the earlier of May 20, 1981 and the particular time and in respect of which the consideration given by the corporation therefor was a property (other than a share, or a property that would have been a Canadian resource property if it had been acquired by the corporation at the time the consideration was given) or services the cost of which may reasonably be regarded as having been primarily an expenditure that was added in computing, (i) the corporation’s earned depletion base by virtue of subclause (b) (i) or (ii), or (ii) the earned depletion base of an original owner of a property by virtue of subclause (b) (i) or (ii) as it applied to the original owner, where the corporation acquired the property in circumstances in which subsection 1202 (2) of the regulations made under the Income Tax Act (Canada) applies, Note:  Clause (g), as remade by O. Reg. 355/98, s. 10 (6), applies to corporations for taxation years ending after February 17, 1987.  See:  O. Reg. 355/98, s. 10 (8). (h) 331/3 per cent of the aggregate of all amounts, each of which is an amount, (i) in respect of the disposition of property of the corporation, other than a disposition of property that had been used by the corporation or any person with whom the corporation was not dealing at arm’s length, that occurred after April 28, 1978 and before the earlier of May 20, 1981 and the particular time, if the capital cost of the property was included in computing the corporation’s earned depletion base by virtue of clause (c) or in computing the earned depletion base of an original owner of the property by virtue of clause (c) as it applied to the original owner if the corporation acquired the property in circumstances in which subsection 1202 (2) of the regulations made under the Income Tax Act (Canada) applies, and (ii) equal to the lesser of the proceeds of disposition of the property and the amount that would be the capital cost of the property to the corporation or the original owner, as the case may be, if all costs of borrowing capital were excluded from the capital cost of the property including those costs of borrowing capital that were incurred prior to the commencement of carrying on a business, Note:  Clause (h), as remade by O. Reg. 355/98, s. 10 (6), applies to corporations for taxation years ending after February 17, 1987.  See:  O. Reg. 355/98, s. 10 (8). (i) an amount that would be described in paragraph 1205 (1) (j) of the regulations made under the Income Tax Act (Canada) if, (i) that paragraph applied only to assistance related to expenditures incurred in connection with oil or gas operations of the corporation that are included in the corporation’s earned depletion base by virtue of paragraphs (a) to (d.1), and (ii) the reference in subparagraph 1205 (1) (j) (iv) to subparagraph 1205 (1) (a) (v) and clause 1205 (1) (a) (vi) (A) of those regulations were read as a reference to subparagraph 1205 (1) (a) (v) only, Note:  Clause (i), as remade by O. Reg. 355/98, s. 10 (6), applies to corporations for taxation years ending after February 17, 1987.  See:  O. Reg. 355/98, s. 10 (8). (j) any amount required to be deducted at or before the particular time in computing the corporation’s earned depletion base by paragraph 1202 (2) (b) of the regulations made under the Income Tax Act (Canada), as it read in its application to taxation years ending before February 18, 1987, or by paragraph 1202 (3) (a) of those regulations, as those paragraphs are made applicable by subsection 104 (2), and Note:  Clause (j), as remade by O. Reg. 355/98, s. 10 (6), applies to corporations for taxation years ending after February 17, 1987.  See:  O. Reg. 355/98, s. 10 (8). (k) the amount, if any, by which the sum of all amounts that would be determined at the particular time under clauses 109 (2) (b) and (c), as those clauses read on May 6, 1997, exceeds the sum of all amounts that would be determined at the particular time under clause 109 (2) (a), as that clause read on May 6, 1997; “fossil fuel” means petroleum, natural gas or a related hydrocarbon; “gross resource profits from oil or gas operations” means, in respect of a corporation for a taxation year, the amount determined for the corporation for the taxation year under subsection (1.1); “joint exploration corporation” has the meaning given to that expression by subsection 18 (15) of the Act; “oil or gas resource activity” means, (a) the production of fossil fuel or sulphur from, (i) oil or gas wells in Canada, (ii) a natural accumulation of petroleum or natural gas in Canada, or (iii) petroleum deposits in Canada, (b) the processing in Canada of heavy crude oil recovered from an oil or gas well in Canada to any stage that is not beyond the crude oil stage or its equivalent, (c) ownership of a right to a rental or royalty computed by reference to the amount or value of production from a property in Canada that is a natural accumulation of petroleum or natural gas, an oil or gas well or a petroleum deposit, or (d) Canadian field processing; “oil or gas well” has the meaning given to that expression by subsection 18 (15) of the Act; “petroleum deposit” means a mine that is a location in a bituminous sands deposit, oil sands deposit or oil shale deposit from which material is extracted; “proceeds of disposition” of property has the meaning given to that expression by paragraph 13 (21) (d) of the Income Tax Act (Canada); “production royalty” means, in respect of a corporation, an amount in respect of a particular Canadian resource property that is included in computing the corporation’s income as a rental or royalty computed by reference to the amount or value of fossil fuel produced from a Canadian fossil fuel source if, (a) the corporation has a Crown royalty in respect of, (i) the production of fossil fuel from the Canadian fossil fuel source, or (ii) the ownership of property to which the production relates and the Crown royalty is computed by reference to an amount of production from the Canadian fossil fuel source, and it is reasonable to consider that the corporation would have had the Crown royalty if the corporation’s only source of income had been the rental or royalty in respect of the particular property, or (b) the corporation would have a Crown royalty described in clause (a) but for an exemption or allowance, other than a rate of nil, that is provided under a statute by a Crown entity; “resource profits from oil or gas operations” means, in respect of a corporation for a taxation year, the amount determined for the corporation for the taxation year under subsection (1.3); “shareholder corporation” has the meaning given to that expression by subsection 18 (15) of the Act; “specified percentage” has the meaning given to that expression by subsection 1206 (1) of the regulations made under the Income Tax Act (Canada); “specified royalty” means a royalty, (a) the cost of which is a Canadian development expense for the purposes of the Act, and (b) that was created after December 5, 1996, otherwise than pursuant to an agreement in writing made on or before that date, as part of a transaction or event or series of transactions or events as a consequence of which depreciable property was acquired at a capital cost that was less than the amount that would have been the fair market value of the depreciable property determined without regard to the royalty; “stated percentage” means, (a) in respect of an expenditure incurred or a cost incurred in borrowing capital, (i) 100 per cent in respect of an expenditure or cost incurred before July 1, 1988, (ii) 50 per cent in respect of an expenditure or cost incurred after June 30, 1988 and before 1990, and (iii) 0 per cent in respect of an expenditure or cost incurred after 1989, (b) in respect of assistance or benefits, (i) 100 per cent in respect of any assistance or benefit that relates to expenditures incurred before July 1, 1988, (ii) 50 per cent in respect of any assistance or benefit that relates to expenditures incurred after June 30, 1988 and before 1990, and (iii) 0 per cent in respect of any assistance or benefit that relates to expenditures incurred after 1989; “tar sands ore” has the meaning given to that term under subsection 1206 (1) of the regulations made under the Income Tax Act (Canada).  R.R.O. 1990, Reg. 183, s. 101 (1); O. Reg. 355/98, ss. 1, 2, 4 (1, 2), 9 (1, 2), 10 (1-7), 15 (1, 2), 17 (1, 2), 24 (1-3), 29 (1); O. Reg. 60/06, s. 1 (1-10). (1.1) A corporation’s gross resource profits from oil or gas operations for a taxation year for the purposes of this Part is calculated using the formula, A + B where, “A” is the amount, if any, by which the sum of “C” and “D” exceeds “E”, “B”   is the amount, if any, by which the sum of “F”, “G” and “H” exceeds “I”, “C” is the sum of all amounts, if any, that are included in computing the corporation’s income for the year from the disposition of a Canadian oil or gas resource property by reason of, (a) subsection 59 (2) of the Income Tax Act (Canada), as it would apply for the purposes of the Act if it were read without reference to subsection 64 (1) of the Income Tax Act, Revised Statutes of Canada, 1952, chapter 148, or (b) paragraph 59 (3.2) (b) or 59.1 (b) of the Income Tax Act (Canada), as made applicable by section 15 of the Act, “D” is the amount, if any, by which the amount included in computing the corporation’s income for the year from the disposition of a Canadian oil or gas resource property by reason of paragraph 59 (3.2) (c) of the Income Tax Act
(Canada), as made applicable by section 15 of the Act, exceeds the proceeds of disposition of properties described in subparagraph (b) (i) of the definition of “Canadian resource property” in subsection 66 (15) of the Income Tax Act (Canada) that became receivable by the corporation after December 31, 1982 and before the end of the year, to the extent that the proceeds have not been deducted for a prior taxation year in determining the amount of “D” or the amount under subclause (a) (ii) of the definition of “gross resource profits from oil or gas operations” in subsection (1), as that definition read before May 7, 1997, “E” is the sum of all amounts, if any, deducted in computing the corporation’s income for the year by reason of paragraph 59.1 (a) of the Income Tax Act (Canada), as made applicable by subsection 15 (1) of the Act, in respect of a disposition of a Canadian oil or gas resource property, “F” is its total income for the taxation year from, (a) the production in Canada of fossil fuel or sulphur from, (i) oil or gas wells in Canada operated by it, (ii) natural accumulations of petroleum or natural gas in Canada operated by it, or (iii) petroleum deposits in Canada operated by it, (b) the processing in Canada of heavy crude oil recovered from an oil or gas well in Canada to any stage that is not beyond the crude oil stage or its equivalent, and (c) Canadian field processing, “G” is the sum of all amounts, if any, each of which is included in computing the corporation’s income for the year in respect of a rental or royalty that is computed by reference to the amount or value of production from a property in Canada that is a natural accumulation of petroleum or natural gas, an oil or gas well or a petroleum deposit and from which a person had a right to take or remove fossil fuel, “H” is, if the corporation owns all the issued and outstanding shares of the capital stock of a railway company throughout the year, the amount that may reasonably be considered to be the railway company’s income for its taxation year ending in the year from the transportation of the corporation’s fossil fuel or sulphur from petroleum deposits in Canada operated by the corporation, “I” is the sum of the corporation’s losses, if any, for the year from sources described in “F”.  O. Reg. 60/06, s. 1 (11). (1.2) For the purposes of subsection (1.1), a corporation’s incomes and losses for a taxation year from sources described in “F” and “G” in that subsection shall be computed in accordance with the Act on the assumption that the corporation had no income or loss for the year except from those sources and was allowed no deductions in computing its income for the year other than, (a) amounts deducted or deductible for the year under section 18, 19 or 21 of the Act that are not in respect of property described in subparagraph (b) (i) of the definition of “Canadian resource property” in subsection 66 (15) of the Income Tax Act (Canada); (b) amounts deducted or deductible for the year under subsection 17 (2) or (6) or section 29 of The Corporations Tax Application Rules, 1972; and (c) any other deductions for the year, except a deduction under section 103, subsection 104 (2) or section 106, that may reasonably be regarded as applicable to those sources.  O. Reg. 60/06, s. 1 (11). (1.3) A corporation’s resource profits from oil or gas operations for a taxation year for the purposes of this Part is the amount, if any, calculated using the formula, J – (K + L + P) where, “J” is the amount of the corporation’s gross resource profits from oil or gas operations for the year as determined under subsection (1.1), “K” is the sum of all amounts deducted in computing the corporation’s income for the year other than, (a) an amount already deducted in computing the corporation’s gross resource profits from oil or gas operations for the year, (b) an amount deducted for the year under, (i) paragraph 20 (1) (ss) or (tt) of the Income Tax Act (Canada), as made applicable by subsection 11 (1) of the Act, (ii) section 60 of the Income Tax Act (Canada), as made applicable by section 16 of the Act, (iii) section 103 of this Regulation, (iv) subsection 1202 (2) of the regulations made under the Income Tax Act
(Canada), as made applicable by subsection 104 (2) of this Regulation, or (v) subsection 106 (1) of this Regulation, (c) an amount deducted under section 66.2 of the Income Tax Act (Canada), as made applicable by section 19 of the Act, in computing the corporation’s income for the year to the extent the amount is attributable to a right, licence or privilege to store fossil fuel underground in Canada, (d) an amount deducted in computing income for the year from a business or other source that does not include any oil or gas resource activity of the corporation, and (e) an amount deducted in computing the corporation’s income for the year to the extent that the amount, (i) relates to an activity, other than an oil or gas resource activity of the corporation, that is, (A)  the production, processing, manufacturing, distribution, marketing, transportation or sale of any property, (B)  the rendering of a service by the corporation to another person for the purpose of earning income of the corporation, or (C)  another activity carried out for the purpose of earning income from property, and (ii) does not relate to an oil or gas resource activity of the corporation, “L” is the sum of all amounts each of which is the amount, if any, by which “M” exceeds “N”, “M” is the amount that would have been charged to the corporation by a person or partnership with whom the corporation was not dealing at arm’s length, if the corporation and that person or partnership had been dealing at arm’s length, (a) for the use in the year of a property, other than money, owned by that person or partnership, or (b) for the provision in the year by that person or partnership of a service to the corporation, “N” is the sum of, (a) the amount charged to the corporation for the use in that period of the property referred to in the definition of “M” or for the provision in that period of the service referred to in the definition of “M”, and (b) the portion of the amount described in the definition of “M” that, if it had been charged, would not have been deductible in computing the corporation’s resource profits from oil or gas operations, and “P” is the sum of all amounts added under subsection 80 (13) of the Income Tax Act
(Canada), as made applicable by subsection 26 (1) of the Act, in computing the corporation’s gross resource profits from oil or gas operations for the year.  O. Reg. 60/06, s. 1 (11). (2) For the purpose of the definition of “earned depletion base” in subsection (1), a corporation’s “earned depletion base as at the end of its last taxation year ending before the 20th day of April, 1977” is that proportion of its earned depletion base as of the end of its last taxation year ending before the 20th day of April, 1977 determined in accordance with section 1205 of the regulations made under the Income Tax Act (Canada) that, (a) the amount by which the aggregate of, (i) expenditures described in clause (b) of the definition of “earned depletion base”, and any amount that would have been such an expenditure if it had been incurred after 1971, and (ii) expenditures described in clause (c) of the definition of “earned depletion base”, that were incurred by the corporation after the 7th day of November, 1969 and before the end of that taxation year, and that are included in clause (b) of this subsection, exceeds three times the amounts referred to in clause (f) of the definition of “earned depletion base” that were incurred by the corporation after the 7th day of November, 1969 and before the end of that taxation year, is of, (b) the amount by which the aggregate of expenditures included under paragraphs 1205 (1) (a), (b), (c) and (d) of the regulations made under the Income Tax Act (Canada), incurred before the end of that taxation year exceeds three times any amount deducted under paragraph 1205 (1) (f) before the end of that taxation year.  R.R.O. 1990, Reg. 183, s. 101 (2). (3) For the purposes of clause (e) of the definition of “earned depletion base” in subsection (1), where a corporation has a taxation year that ends after the 19th day of April, 1977 and that includes that day, the amount deductible under clause 103 (1) (a) for that taxation year shall be deemed to be the proportion of the amount deductible under clause 103 (1) (a) determined on the assumption that this Regulation applied to the whole of the taxation year, that the number of days in the taxation year that follow the 19th day of April, 1977, bears to the total number of days in that taxation year.  R.R.O. 1990, Reg. 183, s. 101 (3). (4) The following rules apply for the purposes of calculating the amount of a corporation’s gross resource profits from oil or gas operations for a taxation year under subsection (1.1): 1. The corporation’s income or loss from a source described in the definition of “F” in that subsection does not include any of the following: i. Any income or loss derived from transporting, transmitting or processing fossil fuel or sulphur, other than the income or loss, if any, from processing described in clause (b) of the definition of “F” in subsection (1.1). ii. If the taxation year ends after December 31, 2002, any income or loss arising because of the application of paragraph 12 (1) (z.1) or (z.2) of the Income Tax Act (Canada), as made applicable by subsection 11 (1) of the Act, section 107.3 of the Income Tax Act (Canada), as made applicable by subsection 32 (1) of the Act, or subsection 11.0.1 (4) of the Act. iii. Any income or loss that can reasonably be attributable to a service rendered by the corporation, other than processing described in clause (b) or (c) of the definition of “F” in subsection (1.1). 2. If the corporation has income from a source described in the definition of “C”, “D”, “E” or “F” in subsection (1.1) and also has income from another source, the amounts referred to in clauses (1.2) (a) and (b) shall not include any amount that is not in respect of expenses incurred in oil or gas operations.  O. Reg. 60/06, s. 1 (12, 13). (5) The following rules apply for the purposes of the definition of “oil or gas resource activity” in subsection (1): 1. The production of a substance by a corporation includes exploration and development activities of the corporation with respect to the substance, whether or not extraction of the substance has begun or will ever begin. 2. The production or processing of a substance by a corporation, or both, include activities performed by the corporation that are ancillary to or in support of the production or processing of that substance by the corporation. 3. The production or processing of a substance by a corporation, or both, includes an activity, including the ownership of property, that is undertaken before the extraction of the substance and that is undertaken for the purpose of extracting or processing the substance. 4. The production or processing of a substance by a corporation, or both, includes activities that the corporation undertakes as a consequence of producing or processing that substance, whether or not the production or processing of the substance has ceased. 5. Despite clauses (a), (b), (c) and (d) of the definition of “oil or gas resource activity” in subsection (1) and paragraphs 1 to 4, neither production nor processing of a substance includes any activity included in production or processing described in the definition of “F” in subsection (1.1) if, i. the activity, A. is the transporting, transmitting or processing of fossil fuel or sulphur, other than processing described in clause (b) of the definition of “oil or gas resource activity” in subsection (1), or B. can reasonably be attributed to a service rendered by the corporation, and ii. revenue from the activity is not taken into account in determining the amount of the corporation’s gross resource profits from oil or gas operations under subsection (1.1).  O. Reg. 60/06, s. 1 (14). (5.1) Revoked:  O. Reg. 355/98, s. 29 (2). (6) For the purposes of this Part, other than sections 108 and 108.4, if a corporation is a member of a partnership at the end of a fiscal period of the partnership, (a) the corporation’s share of the partnership’s resource profits from oil or gas operations for the fiscal period shall be included in computing the corporation’s resource profits from oil or gas operations for the taxation year of the corporation in which the fiscal period ended; (b) any property acquired or disposed of by the partnership shall be deemed to have been acquired or disposed of by the corporation to the extent of its share thereof; (c) any property deemed by clause (b) to have been acquired or disposed of by the corporation shall be deemed to have been acquired or disposed of by it on the day the property was acquired or disposed of by the partnership; (d) any amount that has become receivable by the partnership and in respect of which the consideration given by the partnership therefor was property (other than property referred to in paragraph 59 (2) (a), (c) or (d) of the Income Tax Act (Canada) as made applicable by section 15 of the Act, as those paragraphs read on the 31st day of December, 1984, or a share or interest therein or right thereto) or services, all or part of the original cost of which to the partnership may reasonably be regarded as primarily an exploration or development expense of the corporation, shall be deemed to be an amount receivable by the corporation to the extent of its share thereof, and the consideration so given by the partnership shall, to the extent of the corporation’s share thereof, be deemed to have been given by the corporation for the amount deemed to be receivable by it; (e) any expenditure incurred or deemed to have been incurred by the partnership shall be deemed to have been incurred by the corporation to the extent of its share thereof; and Note:  Clause (e), as amended by O. Reg. 355/98, s. 9 (3), applies in respect of expenditures incurred or deemed to have been incurred after February 28, 1986 and in respect of fiscal periods of partnerships ending after that date.  See:  O. Reg. 355/98, s. 9 (4). (f) any amount or expenditure deemed by clause (d) or (e) to have been receivable or incurred, as the case may be, by the corporation shall be deemed to have become receivable or been incurred, as the case may be, by it on the day the amount became receivable or the expenditure was incurred by the partnership.  R.R.O. 1990, Reg. 183, s. 101 (6); O. Reg. 355/98, ss. 9 (3), 26 (1); O. Reg. 60/06, s. 1 (15, 16). (7) For the purposes of sections 103 and 104 and the definition of “earned depletion base” in subsection (1), where a corporation was a member of a partnership at the end of a fiscal period of the partnership, the corporation shall be deemed to receive or to become entitled to receive any amount of assistance or benefit, whether such amount is by way of a grant, subsidy, rebate, forgiveable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit, that the partnership at any time receives or becomes entitled to receive in respect of expenses incurred in the fiscal period of the partnership, to the extent of, (a) where the partnership in the fiscal period receives or becomes entitled to receive the amount, the corporation’s share thereof; or (b) where the partnership after the fiscal period becomes entitled to receive the amount, what would have been the corporation’s share thereof if the partnership had in the fiscal period received or become entitled to receive the amount, and the time at which the corporation is deemed to receive or become entitled to receive such share of the amount shall be the time that the partnership receives or becomes entitled to receive the amount.  R.R.O. 1990, Reg. 183, s. 101 (7); O. Reg. 355/98, s. 26 (2). (8) For the purposes of this Part, where an expense incurred after the end of the corporation’s last taxation year ending before the 20th day of April, 1977, that was, (a) a Canadian exploration and development expense, other than the cost of a Canadian resource property acquired by a joint exploration corporation; (b) a Canadian exploration expense; or (c) a Canadian development expense, other than an amount referred to in subparagraph 66.2 (5) (a) (iii) of the Income Tax Act (Canada), has been renounced before 1982 in favour of the corporation and was deemed to be an expense of the corporation for the purposes of subsection 18 (5) or (6) of the Act, that expense, if it is not an amount referred to in paragraph 21 (2) (b) or subsection 21 (4) of the Income Tax Act (Canada), shall be deemed to have been a Canadian exploration and development expense, a Canadian exploration expense or a Canadian development expense, as the case may be, incurred by the corporation.  R.R.O. 1990, Reg. 183, s. 101 (8). (9) If an expense of a type prescribed by subsection (9.1) was incurred by an entity after the end of a corporation’s last taxation year ending before April 20, 1977 was renounced after 1981 in favour of the corporation and was deemed to be an expense of the corporation for the purposes of subsection 18 (5) or (6) of the Act, the expense, if it is not an amount in respect of financing, (a) shall be deemed for the purposes of the definition of “earned depletion base” in subsection (1) to have been the same type of expense and to have been incurred by the corporation at the time the expense was incurred by the joint exploration corporation; and (b) shall be deemed for the purposes of section 108 and for the purposes of determining the amount of the corporation’s resource profits from oil or gas operations to have been the same type of expense and to have been incurred by the corporation at the time it was deemed to have been incurred for the purposes of subsection 18 (5) or (6) of the Act.  O. Reg. 60/06, s. 1 (17). (9.1) The following types of expenses are prescribed for the purposes of subsection (9): 1. A Canadian exploration and development expense, other than the cost of a Canadian resource property acquired by a joint exploration corporation. 2. A Canadian exploration expense. 3. A Canadian development expense, other than an amount referred to in paragraph (e) of the definition of “Canadian development expense” in subsection 66.2 (5) of the Income Tax Act (Canada).  O. Reg. 60/06, s. 1 (17). (10) An expense that is a Canadian exploration and development overhead expense of a joint exploration corporation that may reasonably be considered to be included in a Canadian exploration expense or Canadian development expense deemed by subsection (9) to be an expense of a shareholder corporation of the joint exploration corporation, shall be deemed, (a) to be a Canadian exploration and development overhead expense of the shareholder corporation, incurred at the time the Canadian exploration expense or Canadian development expense is deemed by subsection (9) to have been incurred by the shareholder corporation; and (b) at and after that time, not to be a Canadian exploration and development overhead expense incurred by the joint exploration corporation.  R.R.O. 1990, Reg. 183, s. 101 (10). (11) For the purposes of subsection (10), a Canadian exploration and development overhead expense of a joint exploration corporation shall include any expense that would be a Canadian exploration and development overhead expense of the joint exploration corporation if the references to “connected with the taxpayer” in paragraph (d) of the definition of “Canadian exploration and development overhead expense” in subsection 1206 (1) of the regulations made under the Income Tax Act (Canada), as made applicable by the definition of “Canadian exploration and development overhead expense” in subsection (1), were read as “connected with the shareholder corporation in favour of whom the expense was renounced by the joint exploration corporation for the purposes of subsection 18 (6) of the Act”.  R.R.O. 1990, Reg. 183, s. 101 (11). (12) For the purposes of this Part, a person who has an interest in the proceeds of production from a property in Canada that is an oil or gas well, a natural accumulation of petroleum or natural gas or a mineral resource in Canada under an agreement providing that the person is to share in the profits remaining after deducting the operating costs of the property shall be deemed to be a person who operates the property.  O. Reg. 355/98, s. 4 (3). Note:  Subsection (12), as remade by O. Reg. 355/98, s. 4 (3), applies to corporations for taxation years ending after March 31, 1985.  See:  O. Reg. 355/98, s. 4 (5). (13) A reference to “the Act” in this Part and elsewhere in this Regulation is a reference to the Corporations Tax Act.  R.R.O. 1990, Reg. 183, s. 101 (13). (14) Revoked:  O. Reg. 60/06, s. 1 (18). (15) The following rules apply in determining the amount of a corporation’s resource profits from oil or gas operations for a taxation year under subsection (1.3): 1. A corporation is considered not to deal at arm’s length with a partnership if the corporation does not deal at arm’s length with any member of the partnership. 2. A partnership is considered not to deal at arm’s length with another partnership if any member of the first partnership does not deal at arm’s length with any member of the second partnership. 3. If a corporation is a member, or is deemed by this paragraph to be a member, of a partnership that is a member of another partnership, the corporation is deemed to be a member of the other partnership. 4. The provision of a service to a corporation does not include the provision of a service by an individual in the individual’s capacity as an employee of the corporation.  O. Reg. 60/06, s. 1 (19). (16) For the purposes of the definition of “production royalty” in subsection (1), each of the following amounts is a Crown royalty of a corporation in respect of the production of fossil fuel from a Canadian fossil fuel source or in respect of the ownership of property to which the production relates: 1. An amount included in computing the corporation’s income for a taxation year under subsection 11.0.1 (3) of the Act in respect of the production or ownership less all reimbursements, contributions and allowances referred to in subsection 26 (6) of the Act that are received or receivable by the corporation in respect of that amount. 2. An amount in respect of the production or ownership that is prescribed in section 108.2 for the purposes of subsection 11.0.1 (3) of the Act less all reimbursements, contributions and allowances referred to in subsection 26 (6) of the Act that are received or receivable by the corporation in respect of that amount. 3. An amount that is not deductible in respect of the production or ownership in computing the corporation’s income for a taxation year by reason of subsection 11.0.1 (5) of the Act less all reimbursements, contributions and allowances referred to in subsection 26 (6) of the Act that are received or receivable by the corporation in respect of that amount. 4. An amount in respect of the production or ownership that is prescribed by section 108.2 for the purposes of subsection 11.0.1 (5) of the Act less all reimbursements, contributions and allowances referred to in subsection 26 (6) of the Act that are received or receivable by the corporation in respect of that amount. 5. An amount by which the corporation’s proceeds of disposition of the fossil fuel are increased under subsection 108.4 (1). 6. An amount by which the corporation’s cost of acquisition of the fossil fuel is reduced under subsection 108.4 (4).  O. Reg. 60/06, s. 1 (20, 21).