306. (1) Subject to subsection (2) and despite subsections 302 (3) and (4), the amount of taxable income of a railway corporation that shall be deemed to have been earned in a taxation year in a province or territory of Canada other than Ontario in which it had a permanent establishment is one-half the aggregate of, (a) that proportion of the corporation’s taxable income for the taxation year that the corporation’s equated track length in that province or territory of Canada is of the corporation’s equated track length in Canada; and (b) that proportion of the corporation’s taxable income for the taxation year that the corporation’s gross ton miles for the taxation year in that province or territory of Canada is of the corporation’s gross ton miles for the taxation year in Canada.  R.R.O. 1990, Reg. 183, s. 306 (1); O. Reg. 453/93, s. 4 (1). (2) Where a corporation to which subsection (1) would apply if this subsection did not apply thereto operates an airline service, ships or hotels or receives revenues that are petroleum or natural gas royalties or does a combination of two or more of those operations, the amount of the corporation’s taxable income that shall be deemed to have been earned in a taxation year in a province or territory of Canada other than Ontario in which it had a permanent establishment is the aggregate of the amounts computed, (a) where the corporation operates an airline service, by applying the provisions of subsection 307 (1) to that part of the corporation’s taxable income for the taxation year that may reasonably be considered as having arisen from the operation of the airline service; (b) where the corporation operates ships, by applying the provisions of subsection 311 (1) to that part of the corporation’s taxable income for the taxation year that may reasonably be considered as having arisen from the operation of the ships; (c) where the corporation operates hotels, by applying the provisions of subsection 302 (3) to that part of the corporation’s taxable income for the taxation year that may reasonably be considered to have arisen from the operation of the hotels; (d) where the corporation receives revenues that are petroleum or natural gas royalties, by applying the provisions of subsection 302 (3) to that part of the corporation’s taxable income for the taxation year that may reasonably be considered to have arisen from the ownership by the corporation of petroleum or natural gas rights or any interest therein; and (e) by applying the provisions of subsection (1) to the remaining portion of the corporation’s taxable income for the taxation year. (3) For the purpose of section 311 and for the purpose of making an allocation required by clause (2) (b), “salaries and wages paid in the taxation year by the corporation to employees” means salaries and wages paid by the corporation to employees employed in the operation of permanent establishments, other than ships, maintained for the shipping business. (4) For the purpose of subsection 302 (3) and for the purpose of making an allocation required by clause (2) (c), “gross revenue for the taxation year attributable to the permanent establishment in that other jurisdiction” means the gross revenue of the corporation from operating hotels in a province or territory of Canada outside Ontario; “salaries and wages paid in the taxation year by the corporation to the employees” means salaries and wages paid to employees engaged in the operations of its hotels; “total gross revenue for the taxation year” means the total gross revenue of the corporation for the taxation year from operating hotels. (5) Despite subsection 302 (9), for the purpose of subsection 302 (3) and for the purpose of making an allocation required by clause (2) (d), “gross revenue for the taxation year attributable to the permanent establishment in that other jurisdiction” means the gross revenue of the corporation from the ownership by the corporation of petroleum and natural gas rights in lands in a province or territory of Canada outside Ontario and any interest therein; “salaries and wages paid in the taxation year by the corporation to the employees” means salaries and wages paid to employees employed in connection with the corporation’s petroleum and natural gas rights and interests therein; “total gross revenue for the taxation year” means the total gross revenue of the corporation from ownership by the corporation of petroleum and natural gas rights and any interest therein.  R.R.O. 1990, Reg. 183, s. 306 (2-5). (6) For the purposes of subsection (1), “equated track length” means, in a specified place, the aggregate of, (a) the length of first main track, (b) 80 per cent of the length of other main tracks, and (c) 50 per cent of the length of yard tracks and sidings, in that place.  R.R.O. 1990, Reg. 183, s. 306 (6); O. Reg. 453/92, s. 4 (2). Airline Corporations