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

Section 360r27 Disposition versions

2012-09-01

360R27. For the purposes of this chapter, “resource profits” of a taxpayer for a taxation year in respect of an oil business means the amount by which the taxpayer’s gross resource profits for the year in respect of an oil business exceeds the aggregate of

(a)  all amounts deducted in computing the taxpayer’s income for the year, other than

i.  an amount deducted in computing the taxpayer’s gross resource profits for the year in respect of a mining business or an oil business,

ii.  an amount deducted under Chapter III of Title II of Book III of Part I of the Act, under paragraph r or s of section 157, paragraph a or b of section 657 or any of sections 334 to 358.0.1, 371 and 418.17 of the Act or under any of sections 360R17, 360R18, 360R30, 360R36, 360R65, 360R82, 360R83 and 360R89, in computing the taxpayer’s income for the year,

iii.  an amount deducted under Division IV of Chapter X of Title VI of Book III of Part I of the Act in computing the taxpayer’s income for the year, to the extent that it is attributable to any right, licence or privilege to store underground petroleum, natural gas or related hydrocarbons in Canada,

iv.  an amount deducted in computing the taxpayer’s income for the year from a business, or other source, that does not include any resource activity of the taxpayer, and

v.  an amount deducted in computing the taxpayer’s income for the year, to the extent that the amount

(1)  relates to an activity that is not a resource activity of the taxpayer, and that is the rendering of a service by the taxpayer to another person for the purpose of earning income of the taxpayer, or the production, processing, manufacturing, distribution, marketing, transportation or sale of any property, or carried out for the purpose of earning income from property, and

(2)  does not relate to a resource activity of the taxpayer;

(b)  all amounts each of which is the amount by which any particular amount that would have been charged to the taxpayer by a person or partnership with whom the taxpayer was not dealing at arm’s length if the taxpayer and that person or partnership had been dealing at arm’s length for the use after 6 March 1996 and in the year of a property, other than money, owned by that person or partnership, or for the provision after 6 March 1996 and in the year by that person or partnership of a service to the taxpayer, exceeds the aggregate of

i.  the amount charged to the taxpayer for the use of that property or the provision of that service in that period, and

ii.  the portion of the particular amount that, if it had been charged, would not have been deductible in computing the taxpayer’s resource profits in respect of an oil business or a mining business; and

(c)  where the taxation year ends after 21 February 1994, all amounts added under section 485.13 of the Act in computing the taxpayer’s gross resource profits for the year in respect of an oil business.

s. 360R15.1; O.C. 1466-98, s. 51; O.C. 134-2009, s. 1.