I-3, r. 1 - Regulation respecting the Taxation Act

Section 145r2 Disposition versions

2012-09-01

145R2. For the purposes of this chapter, “adjusted resource profits” of a taxpayer for a taxation year means the amount, which may be positive or negative, determined by the formula

A + B – C.

In the formula in the first paragraph,

(a)  A is the aggregate of the taxpayer’s resource profits for the year in respect of a mining business, within the meaning of section 360R24, and the taxpayer’s resource profits for the year in respect of an oil business, within the meaning of section 360R27, computed as if

i.  the amount determined under paragraph a of sections 360R21 and 360R25 were equal to zero,

ii.  section 360R21 were read without reference to subparagraph iii of paragraph b thereof,

iii.  the first paragraph in section 360R3 were read without reference to subparagraph e thereof,

iv.  the following amounts were not deducted in computing the taxpayer’s gross resource profits and resource profits for the year in respect of a mining business or oil business, determined in accordance with sections 360R21 to 360R27:

(1)  each amount deducted in computing the taxpayer’s income for the year in respect of a rental or royalty paid or payable by the taxpayer, other than an amount prescribed in section 91R1, an amount paid or payable in respect of a specified royalty, within the meaning given to that expression by section 360R2, or an amount that is a production royalty within the meaning given to that expression by section 360R2, computed by reference to the amount or value of petroleum, natural gas or related hydrocarbons produced from a natural accumulation, other than a resource within the meaning given to that expression by section 360R2, of petroleum or natural gas in Canada or an oil or gas well in Canada, or produced from a resource, within the meaning given to that expression by section 360R2, that is a bituminous sands deposit, oil sands deposit or oil shale deposit,

(2)  each amount deducted in computing the taxpayer’s income for the year under any of sections 147, 176, 176.4, 176.6 and 179 of the Act, or as, on account of or in lieu of, interest in respect of a debt owed by the taxpayer, and

(3)  each amount deducted under section 145 or Chapter X of Title VI of Book III of Part I of the Act or under section 88.4 of the Act respecting the application of the Taxation Act (chapter I-4),

v.  each amount that is the taxpayer’s share of the income or loss of a partnership from any source were not taken into account, and

vi.  sections 360R21 to 360R27 provided for the computation of negative amounts where the amounts subtracted in computing gross resource profits and resource profits in respect of a mining business or in respect of an oil business exceed the amounts added in computing those amounts;

(b)  B is the aggregate of all amounts each of which is the taxpayer’s share of the adjusted resource profits of a partnership for the year, determined in accordance with sections 145R3 and 145R4; and

(c)  C is the amount by which the aggregate of the following amounts exceeds the amount determined in accordance with the third paragraph:

i.  the aggregate of all amounts, each of which is an amount included in the taxpayer’s gross resource profits for the year in respect of a mining business or oil business, determined in accordance with section 360R21 or 360R25, as the case may be, as a rental or royalty, other than a specified royalty within the meaning given to that expression by section 360R2 or a production royalty within the meaning given to that expression by section 360R2, computed by reference to the amount or value of petroleum, natural gas or related hydrocarbons produced from a natural accumulation, other than a resource within the meaning given to that expression by section 360R2, of petroleum or natural gas in Canada or an oil or gas well in Canada, or produced from a resource, within the meaning given to that expression by section 360R2, that is a bituminous sands deposit or oil shale deposit, and

ii.  50% of the amounts included in the taxpayer’s gross resource profits for the year in respect of a mining business or oil business, determined in accordance with section 360R21 or 360R25, as the case may be, in respect of specified royalties.

The amount referred to in subparagraph c of the second paragraph is equal to the total, where the taxation year ends after 6 March 1996, of all outlays and expenses that were made or incurred in respect of the aggregate described in subparagraph i of subparagraph c of the second paragraph, to the extent that the outlays and expenses were deducted in computing the taxpayer’s gross resource profits in respect of a mining business or oil business for the year.

s. 145R1.1; O.C. 2509-85, s. 4; O.C. 91-94, s. 5; O.C. 35-96, s. 9; O.C. 1466-98, s. 28; O.C. 1451-2000, s. 5; O.C. 1470-2002, s. 29; O.C. 134-2009, s. 1.