11.0.1 (1) For taxation years ending after December 31, 2002, paragraphs 12 (1) (o), (x.2) and (z.5), 18 (1) (m) and 20 (1) (v) of the Income Tax Act
(Canada) do not apply in computing the income of a corporation from a business or property for the purposes of this Act and the provisions of this section apply instead.  2004, c. 31, Sched. 9, s. 3. Deduction not allowed (2) Despite paragraph 18 (1) (a) of the Income Tax Act (Canada), in computing the income of a corporation for taxation years ending after December 31, 2002 from a business or property, no deduction shall be made in respect of any tax on income levied by any province or territory in Canada for the year from mining operations other than a deduction prescribed by the regulations.  2004, c. 31, Sched. 9, s. 3. Income amounts, royalties, etc. (3) There shall be included in computing the income of a corporation for a taxation year ending after December 31, 2002 as income from a business or property any amount, other than an amount prescribed by the regulations and an amount referred to in subsection (5), (a)   that became receivable in the year by, (i)   Her Majesty in right of Canada or of a province, (ii)   an agent of Her Majesty in right of Canada or of a province, or (iii)   a corporation, commission or association that is controlled by Her Majesty in right of Canada or of a province or by an agent of Her Majesty in right of Canada or of a province; and (b)   that can reasonably be considered to be a royalty, tax (other than a tax or portion of a tax that can reasonably be considered to be a municipal or school tax), lease rental or bonus, however described, or to be in respect of the late receipt or non-receipt of any of those amounts, in relation to, (i)   the acquisition, development or ownership of a Canadian resource property of the corporation, or (ii)   the production in Canada, (A)   of petroleum, natural gas or related hydrocarbons from a natural accumulation of petroleum or natural gas (other than a mineral resource) located in Canada, or from an oil or gas well located in Canada, in respect of which the corporation had an interest, (B)   of sulphur from a natural accumulation of petroleum or natural gas located in Canada, from an oil or gas well located in Canada or from a mineral resource located in Canada, in respect of which the corporation had an interest, (C)   to any stage that is not beyond the prime metal stage or its equivalent, of metal, minerals (other than iron or petroleum or related hydrocarbons) or coal from a mineral resource located in Canada in respect of which the corporation had an interest, (D)   to any stage that is not beyond the pellet stage or its equivalent, of iron from a mineral resource located in Canada in respect of which the corporation had an interest, or (E) to any stage that is not beyond the crude oil stage or its equivalent, of petroleum or related hydrocarbons from a deposit located in Canada of bituminous sands or oil shales in respect of which the corporation had an interest.  2004, c. 31, Sched. 9, s. 3. Same (4) There shall be included in computing the income of a corporation for a taxation year ending after December 31, 2002 as income from a business or property 25 per cent of the corporation’s prescribed resource loss for the year.  2004, c. 31, Sched. 9, s. 3. Royalties (5) In computing the income of a corporation from a business or property for a taxation year ending after December 31, 2002, no deduction shall be made in respect of any amount, other than an amount prescribed by the regulations, (a)   that is paid or payable in the year to, (i)   Her Majesty in right of Canada or of a province, (ii)   an agent of Her Majesty in right of Canada or of a province, or (iii)   a corporation, a commission or an association that is controlled by Her Majesty in right of Canada or of a province or by an agent of Her Majesty in right of Canada or of a province; and (b) that can reasonably be considered to be a royalty, tax (other than a tax or portion of a tax that can reasonably be considered to be a municipal or school tax), lease rental or bonus, however described, or to be in respect of the late payment or non-payment of any of those amounts, in relation to, (i) the acquisition, development or ownership of a Canadian resource property, or (ii) the production in Canada, (A) of petroleum, natural gas or related hydrocarbons from a natural accumulation of petroleum or natural gas (other than a mineral resource) located in Canada, or from an oil or gas well located in Canada, (B) of sulphur from a natural accumulation of petroleum or natural gas located in Canada, from an oil or gas well located in Canada or from a mineral resource located in Canada, (C) to any stage that is not beyond the prime metal stage or its equivalent, of metal, minerals (other than iron or petroleum or related hydrocarbons) or coal from a mineral resource located in Canada, (D) to any stage that is not beyond the pellet stage or its equivalent, of iron from a mineral resource located in Canada, or (E) to any stage that is not beyond the crude oil stage or its equivalent, of petroleum or related hydrocarbons from a deposit located in Canada of bituminous sands or oil shales.  2004, c. 31, Sched. 9, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 31, Sched. 9, s. 3 - 16/12/2004