26 (1) The rules provided in subdivision f of Division B of Part I of the Income Tax Act (Canada), relating to the computation of income are, in so far as the said rules apply to corporations, applicable in computing income for the purposes of this Act.  R.S.O. 1990, c. C.40, s. 26 (1); 2004, c. 16, s. 2 (2). General limitation re expenses (2) In computing income, no deduction shall be made in respect of an outlay or expense in respect of which any amount is otherwise deductible under this Act, except to the extent that the outlay or expense was reasonable in the circumstances.  R.S.O. 1990, c. C.40, s. 26 (2); 2004, c. 16, s. 2 (2). Treatment of foreign resource properties on amalgamation (3) In the application of subsection 69 (13) of the Income Tax Act (Canada) for the purposes of this Act, the proceeds of disposition of a foreign resource property shall be deemed to be the cost amount to the corporation of the foreign resource property immediately before the amalgamation or merger.  R.S.O. 1990, c. C.40, s. 26 (3); 2004, c. 16, s. 2 (2). Application of Income Tax Act (Canada) (4) References in section 67.3 of the Income Tax Act (Canada) to the prescribed rate shall mean the prescribed rate determined in accordance with the regulations made under the Income Tax Act (Canada).  1992, c. 3, s. 6; 2004, c. 16, s. 2 (2). Disposition of petroleum, etc. (4.1) Where a corporation is an operator with respect to a natural accumulation of petroleum or natural gas in Canada, an oil or gas well in Canada or a mineral resource in Canada and at any time in a taxation year beginning after December 31, 2006 disposes of or acquires property produced in the operation that is petroleum, natural gas or related hydrocarbons or metal or minerals produced in the operation, the rules prescribed by the regulations apply to determine the amount of the proceeds of disposition deemed to be received by the corporation or the cost to the corporation of the property.  2004, c. 31, Sched. 9, s. 12. Reduction of resource expenditures (5) Subsection 80 (8) of the Income Tax Act (Canada) shall be read as if paragraph (e) of that subsection had not been enacted.  1996, c. 29, s. 44 (1); 2004, c. 16, s. 2 (2). Resource royalties, reimbursement by corporation (6) The rules set out in subsection (7) apply for the purposes of this Act, other than this section, where for taxation years beginning after December 31, 2006, (a) a corporation, under the terms of a contract, pays to another person an amount (in this subsection referred to as the “specified payment”) that may reasonably be considered to have been received by the other person as a reimbursement, contribution or allowance in respect of an amount (referred to in clause (b) as the “particular amount”) paid or payable by the other person; (b) the particular amount is included in the income of the other person or is denied as a deduction in computing the income of the other person by reason of subsection 11.0.1 (3) or (5), as the case may be; and (c) the corporation was resident in Canada or carrying on business in Canada at the time the specified payment was made by the corporation.  2004, c. 31, Sched. 9, s. 12. Same (7) The following are the rules for the purposes of subsection (6): 1. The corporation shall be deemed neither to have made nor to have become obligated to make the specified payment to the other person but to have paid an amount described in subsection 11.0.1 (5) equal to the amount of the specified payment. 2. The other person shall be deemed neither to have received nor to have become entitled to receive the specified payment from the corporation.  2004, c. 31, Sched. 9, s. 12. Section Amendments with date in force (d/m/y) 1992, c. 3, s. 6 - 25/06/1992; 1994, c. 14, s. 9 (1, 2) - 01/06/1993; 1996, c. 29, s. 44 (1, 2) - 22/02/1994 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 12 - 16/12/2004