I-3 - Taxation Act

Section 395.3 Disposition versions

2015-10-26

395.3. For the purposes of paragraph c.3 of section 395, “specified oil sands mine development expense” means an expense that is incurred by a taxpayer after 21 March 2011 but on or before 31 December 2014 to achieve completion of a specified oil sands mine development project of the taxpayer and that would be described in paragraph c.1 of section 395 if that paragraph were read without reference to “and before 21 March 2013” and “, other than a bituminous sands deposit or an oil shale deposit,”.

For the purposes of this section,

“bitumen mine development project”, of a taxpayer, means a project the taxpayer undertakes for the sole purpose of developing a new mine to extract and process tar sands from a mineral resource of the taxpayer to produce bitumen or a similar product;

“bitumen upgrading development project”, of a taxpayer, means a project the taxpayer undertakes for the sole purpose of constructing an upgrading facility to process bitumen or a similar feedstock (all or substantially all of which is from a mineral resource of the taxpayer) from a new mine to the crude oil stage or its equivalent;

“completion”, of a specified oil sands mine development project, means the first attainment of a level of average output, attributable to the project and measured over a 60-day period, equal to at least 60% of the planned level of average daily output (as determined in paragraph b of the definition of “specified oil sands mine development project”);

“designated asset”, in respect of an oil sands mine development project of a taxpayer, means a property that is a building, a structure, machinery or equipment and is, or is an integral and substantial part of,

(a)  in the case of a bitumen mine development project,

i.  a crusher,

ii.  a froth treatment plant,

iii.  a primary separation unit,

iv.  a steam generation plant,

v.  a cogeneration plant, or

vi.  a water treatment plant; or

(b)  in the case of a bitumen upgrading development project,

i.  a gasifier unit,

ii.  a vacuum distillation unit,

iii.  a hydrocracker unit,

iv.  a hydrotreater unit,

v.  a hydroprocessor unit, or

vi.  a coker;

“oil sands mine development project”, of a taxpayer, means a bitumen mine development project or a bitumen upgrading development project;

“preliminary work activity”, in respect of a taxpayer’s oil sands mine development project, means any activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of the taxpayer of designated assets in respect of the project including, in particular, the following activities:

(a)  obtaining permits or regulatory approvals;

(b)  performing design or engineering work;

(c)  conducting feasibility studies;

(d)  conducting environmental assessments; and

(e)  entering into contracts;

“specified oil sands mine development project”, of a taxpayer, means an oil sands mine development project (not including any preliminary work activity) in respect of which

(a)  one or more designated assets was, before 22 March 2011, acquired by the taxpayer or in the process of being constructed, fabricated or installed, by or on behalf of the taxpayer; and

(b)  the planned level of average daily output (where that output is bitumen or a similar product in the case of a bitumen mine development project, or synthetic crude oil or a similar product in the case of a bitumen upgrading development project) that can reasonably be expected, is the lesser of

i.  the level that was the demonstrated intention of the taxpayer on 21 March 2011 to produce from the oil sands mine development project, and

ii.  the maximum level of output associated with the design capacity, on 21 March 2011, of the designated assets referred to in paragraph a.

2012, c. 8, s. 52; 2015, c. 24, s. 66.

2012-05-09

395.3. For the purposes of paragraph c.3 of section 395, “specified oil sands mine development expense” means an expense that is incurred by a taxpayer after 21 March 2011 but on or before 31 December 2014 to achieve completion of a specified oil sands mine development project of the taxpayer and that would be described in paragraph c.1 of section 395 if that paragraph were read without reference to “, other than a bituminous sands deposit or an oil shale deposit,”.

For the purposes of this section,

“bitumen mine development project”, of a taxpayer, means a project the taxpayer undertakes for the sole purpose of developing a new mine to extract and process tar sands from a mineral resource of the taxpayer to produce bitumen or a similar product;

“bitumen upgrading development project”, of a taxpayer, means a project the taxpayer undertakes for the sole purpose of constructing an upgrading facility to process bitumen or a similar feedstock (all or substantially all of which is from a mineral resource of the taxpayer) from a new mine to the crude oil stage or its equivalent;

“completion”, of a specified oil sands mine development project, means the first attainment of a level of average output, attributable to the project and measured over a 60-day period, equal to at least 60% of the planned level of average daily output (as determined in paragraph b of the definition of “specified oil sands mine development project”);

“designated asset”, in respect of an oil sands mine development project of a taxpayer, means a property that is a building, a structure, machinery or equipment and is, or is an integral and substantial part of,

(a)  in the case of a bitumen mine development project,

i.  a crusher,

ii.  a froth treatment plant,

iii.  a primary separation unit,

iv.  a steam generation plant,

v.  a cogeneration plant, or

vi.  a water treatment plant; or

(b)  in the case of a bitumen upgrading development project,

i.  a gasifier unit,

ii.  a vacuum distillation unit,

iii.  a hydrocracker unit,

iv.  a hydrotreater unit,

v.  a hydroprocessor unit, or

vi.  a coker;

“oil sands mine development project”, of a taxpayer, means a bitumen mine development project or a bitumen upgrading development project;

“preliminary work activity”, in respect of a taxpayer’s oil sands mine development project, means any activity that is preliminary to the acquisition, construction, fabrication or installation by or on behalf of the taxpayer of designated assets in respect of the project including, in particular, the following activities:

(a)  obtaining permits or regulatory approvals;

(b)  performing design or engineering work;

(c)  conducting feasibility studies;

(d)  conducting environmental assessments; and

(e)  entering into contracts;

“specified oil sands mine development project”, of a taxpayer, means an oil sands mine development project (not including any preliminary work activity) in respect of which

(a)  one or more designated assets was, before 22 March 2011, acquired by the taxpayer or in the process of being constructed, fabricated or installed, by or on behalf of the taxpayer; and

(b)  the planned level of average daily output (where that output is bitumen or a similar product in the case of a bitumen mine development project, or synthetic crude oil or a similar product in the case of a bitumen upgrading development project) that can reasonably be expected, is the lesser of

i.  the level that was the demonstrated intention of the taxpayer on 21 March 2011 to produce from the oil sands mine development project, and

ii.  the maximum level of output associated with the design capacity, on 21 March 2011, of the designated assets referred to in paragraph a.

2012, c. 8, s. 52.