108. (1) For the purposes of clause 11 (10) (b) of the Act, in computing its income for a taxation year, a corporation may deduct, (a) if the taxation year commences after May 6, 1997 and ends before January 1, 2003, the amount, if any, that would be determined in respect of the corporation for the year under subsection 1210 (1) of the regulations made under the Income Tax Act (Canada) if the corporation’s adjusted resource profits for the year were determined under subsection 1210 (2) of those regulations and paragraph (c) of the definition of “A” in that subsection were applied on the basis that, (i) an amount that is deducted in computing income under any provision of the Income Tax Act (Canada) that applies with or without modifications for the purposes of the Corporations Tax Act is calculated as the amount deducted in computing income for the purposes of the Corporations Tax Act under the provision as it applies for the purposes of that Act, if the deduction under the provision of the Income Tax Act (Canada) is not prohibited under paragraph (c) of the definition of “A” in subsection 1210 (2) of those regulations, (ii) an amount that is deducted in computing income under a provision of the Act that applies instead of a comparable provision of the Income Tax Act
(Canada) is deducted instead of the amount determined under the comparable provision of the Income Tax Act (Canada), if the deduction under the comparable provision of the Income Tax Act (Canada) is not prohibited under paragraph (c) of the definition of “A” in subsection 1210 (2) of those regulations, and (iii) an amount that is deducted in computing income under a provision of the Act where there is no comparable provision in the Income Tax Act (Canada) is deducted under that Act; (a.1) if the taxation year ends after December 31, 2002, the amount, if any, determined in respect of the corporation for the year under subsection (2); and (b) the amount, if any, that would be determined in respect of the corporation for that year under paragraph 1212 (1) (a) of the regulations made under the Income Tax Act
(Canada) if, (i) the reference in that paragraph to Part I of the Income Tax Act (Canada) were a reference to Part II of the Act, (ii) references in that paragraph to provisions in the Income Tax Act (Canada) were to those provisions as they apply for the purposes of the Act, and (iii) the reference to the corporation’s supplementary depletion base as of the end of the year were a reference to the amount of the corporation’s supplementary depletion base for the year that would be determined under section 109 of this Regulation, as it read before May 7, 1997, and this clause, before making any deduction under this clause for the year.  O. Reg. 355/98, s. 30 (1); O. Reg. 60/06, s. 3 (1, 2). (2) The amount determined under this subsection in respect of a corporation for a taxation year ending after December 31, 2002 is the amount, if any, calculated using the formula, [0.25 × (Q – R)] – S where, “Q” is the corporation’s adjusted resource profits for the year, as determined under this section, “R”   is the total of all amounts each of which is a Canadian exploration and development overhead expense made or incurred by the corporation in the year, other than an amount that is a Canadian exploration and development overhead expense because it is deemed to be a Canadian exploration expense or a Canadian development expense under subsection 21 (2) or (4) of the Income Tax Act
(Canada), and “S”   is the amount, if any, determined under subsection (3) in respect of the corporation for the year.  O. Reg. 60/06, s. 3 (3). (3) The amount determined under this subsection in respect of a corporation for a taxation year is the amount, if any, by which “T” exceeds “U” where, “T” is the total of all amounts determined under paragraphs 1205 (1) (e) to (k) of the regulations made under the Income Tax Act (Canada) in computing the corporation’s earned depletion base at the end of the year, as determined under section 1205 of those regulations, other than any portion of that total determined under paragraph 1205 (1) (i) of those regulations as a consequence of a disposition in the year of property in circumstances in which subsection 1202 (2) of those regulations applies, and “U” is the amount equal to 33 1/3 per cent of the total of all amounts determined under paragraphs 1205 (1) (a) to (d.2) of the regulations made under the Income Tax Act
(Canada) in computing the corporation’s earned depletion base at the end of the year, as determined under section 1205 of those regulations.  O. Reg. 60/06, s. 3 (3). (4) A corporation’s adjusted resource profits for a taxation year for the purposes of this section is the amount, which may be a positive or negative amount, calculated using the formula, V + W – X where, “V” is the amount of the corporation’s resource profits for the year, as determined under subsection (5), “W” is the total of all amounts each of which is the designated percentage, as determined under subsection (7), of the corporation’s share for the year of the adjusted resource profits of a partnership, as determined under subsection (6), for a fiscal period of the partnership ending in the year, and “X” is the amount, if any, by which the sum of “Y” and “Z” exceeds the amount of “AA” where, “Y” is the total of all amounts each of which is an amount, other than a production royalty or a specified royalty, that is included in the corporation’s gross resource profits for the year under subsection 1204 (1) of the regulations made under the Income Tax Act (Canada) as a rental or royalty computed by reference to the amount or value of fossil fuel produced from a Canadian fossil fuel source, “Z” is 50 per cent of all amounts in respect of specified royalties that are included in the corporation’s gross resource profits for the year under subsection 1204 (1) of the regulations made under the Income Tax Act
(Canada), and “AA” is the total of all outlays and expenses that were made or incurred in respect of the amounts included in the calculation of “Y”, to the extent the outlays and expenses were deducted in computing the corporation’s gross resource profits for the year under subsection 1204 (1) of the regulations made under the Income Tax Act (Canada).  O. Reg. 60/06, s. 3 (3). (5) The amount of a corporation’s resource profits for a taxation year for the purposes of this section is the amount that would be determined in respect of the corporation for the year under subsection 1204 (1.1) of the regulations made under the Income Tax Act (Canada) if the following rules applied: 1. In determining the corporation’s gross resource profits for the year under subsection 1204 (1) of those regulations, i. no amount shall be included under paragraph 1204 (1) (a) of those regulations, and ii. no amount shall be included in the corporation’s income for the year from the processing in Canada of ore described in clause 1204 (1) (b) (iv) (A), (B) or (C) of those regulations. 2. References to a resource activity in subparagraph 1204 (1.1) (a) (iv), subclause 1204 (1.1) (a) (v) (A) (I) and clause 1204 (1.1) (a) (v) (B) of those regulations shall be read as references to a resource activity other than an activity described in paragraph (d) of the definition of “resource activity” in subsection 1206 (1) of those regulations. 3. The corporation’s gross resource profits for the year under subsection 1204 (1) of those regulations and its resource profits for the year under subsection 1204 (1.1) of those regulations shall be determined on the basis that, i. no amount is deductible in computing the corporation’s income for the year in respect of a rental or royalty that is paid or payable by the corporation and computed by reference to the amount or value of fossil fuel produced from a Canadian fossil fuel source, other than an amount in respect of a rental or royalty described in paragraph 1, 2, 3 or 4 of section 108.2, an amount that is a production royalty or an amount paid or payable in respect of a specified royalty, ii. no amount is deductible in computing the corporation’s income for the year under paragraph 20 (1) (e), (e.1), (e.2) or (f) of the Income Tax Act (Canada) or as, on account of or in lieu of, interest in respect of a debt owed by the corporation, iii. no amount is deductible in computing the corporation’s income under paragraph 20 (1) (v.1) of the Income Tax Act (Canada), any of sections 65 to 66.7 of that Act, subsection 17 (2) or (6) of the Income Tax Application Rules or section 29 of those Rules, iv. section 11.0.1 and subsection 31 (1.2) of the Act apply in computing the corporation’s income for the year, iv.1 subsections 26 (4.1), (6) and (7) of the Act apply in computing the corporation’s income for the year, if the year begins after December 31, 2006, v. an amount that is deducted in computing income under any provision of the Income Tax Act (Canada) that applies with or without modifications for the purposes of the Corporations Tax Act shall be calculated as the amount deducted in computing income for the purposes of the Corporations Tax Act under the provision as it applies for the purposes of that Act, if the deduction under the provision of the Income Tax Act (Canada) is not prohibited under subparagraph i, ii or iii, vi. an amount that is deducted in computing income under a provision of the Act that applies instead of a comparable provision of the Income Tax Act
(Canada) shall be deducted instead of the amount determined under the comparable provision of the Income Tax Act
(Canada), if the deduction under the comparable provision of the Income Tax Act (Canada) is not prohibited under subparagraph i, ii or iii, and vii. an amount that is deducted in computing income under a provision of the Act where there is no comparable provision in the Income Tax Act (Canada) shall be considered to have been deducted under the Income Tax Act (Canada). 4. The corporation’s share of the income or loss of a partnership from any source shall be deemed to be nil. 5. Each of subsections 1204 (1) and (1.1) of the regulations made under the Income Tax Act
(Canada) shall be deemed to allow the computation of a negative amount if the sum of the amounts deducted under the subsection exceeds the sum of the amounts added under that subsection.  O. Reg. 60/06, s. 3 (3, 4). (6) For the purposes of the definition of “W” in subsection (4), a corporation’s share for a taxation year ending after December 31, 2002 of a particular partnership’s adjusted resource profits for a fiscal period ending in the year is determined as follows: 1. If the corporation does not hold a direct interest in the particular partnership at the end of the fiscal period, the corporation’s share of the partnership’s adjusted resource profits is deemed to be nil. 2. If the corporation holds a direct interest in the particular partnership at the end of the fiscal period, the corporation’s share of the partnership’s adjusted resource profits is the amount that may reasonably be considered to represent the corporation’s share of the partnership’s adjusted resource profits for the fiscal period, determined under subsection (4) as if, i. the particular partnership and every other partnership in which the corporation has an indirect interest through the particular partnership were corporations, each having a taxation year that is the same as its fiscal period, ii. subparagraphs 3 iv and iv.1 of subsection (5) apply to the particular partnership, but only if the corporation is a majority interest partner in that partnership at the end of the fiscal period, iii. subparagraphs 3 iv and iv.1 of subsection (5) apply to another partnership in which the corporation held an indirect interest through the particular partnership, but only if the corporation is a majority interest partner in the particular partnership at the end of the fiscal period and is a majority interest partner in the other partnership at any time in the fiscal period, iv. subparagraphs 3 v, vi and vii of subsection (5) do not apply, and v. the designated percentage for the purposes of subsection (4) in respect of each partnership’s interest in another partnership were 100 per cent.  O. Reg. 60/06, s. 3 (5, 6). (7) For the purposes of the definition of “W” in subsection (4), the designated percentage of a corporation’s share for a taxation year of the adjusted resource profits of a partnership for a fiscal period ending in the year is determined as follows: 1. The corporation’s designated percentage is 100 per cent if the corporation holds a direct interest in and is a majority interest partner of the partnership at the end of the fiscal period and does not have, through that partnership, an indirect interest in another partnership, other than, i. a partnership of which the corporation is a majority interest partner at any time in the fiscal period, or ii. a partnership that carries on no resource activity as defined in subsection 1204 (6) of the regulations made under the Income Tax Act (Canada). 2. If the fiscal period begins before January 1, 2007 and the corporation holds a direct interest in the partnership at the end of the fiscal period but is not a majority interest partner at that time, the corporation’s designated percentage is the sum of the following percentages: i. 100 per cent multiplied by the ratio of the number of days in the fiscal period that are before January 1, 2003 to the total number of days in the fiscal period. ii. 90 per cent multiplied by the ratio of the number of days in the fiscal period that are after December 31, 2002 and before January 1, 2004 to the total number of days in the fiscal period. iii. 75 per cent multiplied by the ratio of the number of days in the fiscal period that are after December 31, 2003 and before January 1, 2005 to the total number of days in the fiscal period. iv. 65 per cent multiplied by the ratio of the number of days in the fiscal period that are after December 31, 2004 and before January 1, 2006 to the total number of days in the fiscal period. v. 35 per cent multiplied by the ratio of the number of days in the fiscal period that are after December 31, 2005 and before January 1, 2007 to the total number of days in the fiscal period.  O. Reg. 60/06, s. 3 (7). (8) For greater certainty, nothing in subparagraph 2 i of subsection (6) affects the nature or extent of any partner’s interest in any partnership for the purposes of, (a) the definition of “W” in subsection (4); or (b) paragraph 4 of subsection (5).  O. Reg. 60/06, s. 3 (7). Amounts Prescribed for the Purposes of Section 11.0.1 of the Act