I-3 - Taxation Act

Section 158.15 Disposition versions

2009-05-15

158.15. Subparagraph a of the first paragraph of section 158.4 does not apply in determining the amount that a taxpayer may deduct for a taxation year in respect of a matchable expenditure in respect of a right to receive production if

(a)  before the end of the taxation year in which the expenditure is made, the aggregate of all amounts each of which is included in computing the taxpayer’s income for the year, other than the portion of such an amount that is the subject of a reserve claimed by the taxpayer for the year under this Act, in respect of the right to receive production that relates to the matchable expenditure exceeds 80% of the expenditure; and

(b)  no portion of the expenditure can reasonably be considered to have been paid to another taxpayer, or to a person or partnership with whom the other taxpayer does not deal at arm’s length, to acquire the right to receive production from the other taxpayer.

2009, c. 5, s. 64.