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

Section 360r42 Disposition versions

2012-09-01

360R42. For the purposes of this chapter, earned depletion base of a taxpayer at a particular time means the amount determined by the formula

A – B.

In the formula in the first paragraph,

(a)  A is the aggregate of

i.  33 1/3% of the amount of the expenditures incurred by the taxpayer and described in sections 360R48 to 360R57, other than

(1)  those described in section 360R47, and

(2)  in the case of an individual, those referred to in section 360R90, and

ii.  50% of the amount of the expenditures described in section 360R47; and

(b)  B is the aggregate of

i.  the amounts deducted under section 360R17 in computing the taxpayer’s income for any taxation year ending before that time and after 6 May 1974,

ii.  33 1/3% of the aggregate of the amounts each of which is the stated percentage of the cost of borrowing capital, including costs incurred before the beginning of operations of a business, that is included in the capital cost to the taxpayer of a depreciable property described in paragraph d of section 360R48, in paragraph e or f of section 360R49 or in paragraph a or b of section 360R55 or that is an expenditure described in paragraph c of that section 360R55,

iii.  33 1/3% of the aggregate of the amounts each of which is an amount that becomes receivable by the taxpayer after 28 April 1978 and before that time but not after 11 December 1979, and in respect of which the consideration given by the taxpayer is a property, other than a share or a property that would have been for the taxpayer a Canadian resource property if the taxpayer had acquired it at the time the taxpayer gave the consideration, or services the cost of which may reasonably be considered to be an expenditure originally included

(1)  in computing the taxpayer’s earned depletion base by reason of any of paragraphs a to c of section 360R48 or paragraph c of section 360R55, or

(2)  where the taxpayer acquired a property in circumstances where section 360R18 applies, in computing the earned depletion base of an original owner of the property by reason of any of paragraphs a to c of section 360R48 or paragraph c of section 360R55, as they applied to the original owner,

iv.  33 1/3% of the aggregate of the amounts each of which is an amount, established according to section 360R44, related to the disposition, after 28 April 1978 and before that time but not after 11 December 1979, of a property of the taxpayer, other than a property already used by the taxpayer and disposed of the taxpayer in favour of a person with whom the taxpayer did not deal at arm’s length, the capital cost of which was included

(1)  in computing the earned depletion base of the taxpayer by reason of paragraph d of section 360R48 or paragraph a or b of section 360R55, or

(2)  where the taxpayer acquired a property in circumstances where section 360R18 applies, in computing the earned depletion base of an original owner of the property by reason of paragraph d of section 360R48 or paragraph a or b of section 360R55, as they applied to the original owner,

v.  any amount that is required to be deducted not later than that time in computing the taxpayer’s earned depletion base, as the case may be, under paragraph a of section 360R59 or under section 360R59 as it read in its application to a taxation year ending before 18 February 1987,

vi.  33 1/3% of the aggregate of the amounts each of which is related to an amount of assistance or benefit described in the first paragraph of section 360R45 and is equal

(1)  in the case provided for in subparagraph a of the second paragraph of section 360R45, to the stated percentage of the amount of assistance or benefit, or

(2)  in the case provided for subparagraph b of the second paragraph of section 360R45, to the amount obtained by applying to the amount of assistance or benefit the specified percentage, in respect of the expenses referred to in that subparagraph b, for the calendar year during which the taxpayer or the original owner referred to in subparagraph b of the first paragraph of that section 360R45, as the case may be, incurred those expenses, and

vii.  the amount by which the aggregate of the amounts that would be determined under paragraphs a to f of section 360R85 exceeds the aggregate of the amounts that would be determined under paragraphs a to c of section 360R84 in computing the taxpayer’s additional depletion at the particular time.

s. 360R17; O.C. 1981-80, s. 360R17; O.C. 1983-80, s. 20; O.C. 2456-80, s. 8; O.C. 3926-80, s. 15; R.R.Q., 1981, c. I-3, r. 1, s. 360R17; O.C. 2962-82, s. 47; O.C. 500-83, s. 47; O.C. 2509-85, s. 19; O.C. 421-88, s. 14; Erratum, 1988 G.O. 2, 2537; O.C. 35-96, s. 43; O.C. 134-2009, s. 1; O.C. 1176-2010, s. 25.