I-3 - Taxation Act

Section 726.4.17.2 Disposition versions

2023-09-26

726.4.17.2. In this Title, the exploration base relating to certain Québec surface mining exploration expenses of an individual, at any time, means an amount equal to the amount by which the amount computed under section 726.4.17.3 is exceeded by 33 1/3% of the amount by which

(a)  the aggregate of the expenses, except those described in section 726.4.17.4, incurred in Québec by the individual before that time, and that are

i.  Canadian exploration expenses incurred by the individual after 31 December 1988 and that would be described in paragraph c of section 395 if the reference therein to “Canada”, wherever it appears, were a reference to “Québec”, described in paragraph d of the said section 395 if the reference therein to “expenses described in paragraphs a to b.1 and c to c.2” were replaced by a reference to “expenses that would be described in paragraph c, if the reference therein to “Canada”, wherever it appears, were a reference to “Québec””, or described in paragraph e of the said section 395 if the reference therein to “an expense described in paragraphs a to c.1” were replaced by a reference to “any expense that would be described in paragraph c, if the reference therein to “Canada”, wherever it appears, were a reference to “Québec””, except any of those expenses that are related to removing overburden and stripping, where such work is more than is needed to obtain indicators of mineralization or for the preliminary sampling thereof, or related to drilling and trenching or digging test pits, where such work constitutes underground exploration work, or

ii.  expenses referred to in subparagraph 1 or 2 of subparagraph i of paragraph a of section 726.4.10, incurred by the individual after 9 May 1996, other than expenses that would be referred to in subparagraph i if that subparagraph were read without reference to “, except any of those expenses that are related to removing overburden and stripping, where such work is more than is needed to obtain indicators of mineralization or for the preliminary sampling thereof, or related to drilling and trenching or digging test pits, where such work constitutes underground exploration work”; exceeds

(b)  the aggregate of all amounts of assistance, within the meaning of paragraph c.0.1 of section 359, which a person, including a partnership, has received, is entitled to receive or becomes, at any time, entitled to receive in respect of an expense referred to in paragraph a, to the extent that the assistance has not reduced the Canadian exploration expenses of the individual by reason of subparagraph a of the first paragraph of section 359.2 and is not an amount received, receivable or that became, at any time, entitled to be received under subsection 5 of section 127 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in respect of a flow-through mining expenditure or a flow-through critical mineral mining expenditure, within the meaning assigned to those expressions by subsection 9 of that section 127.

1990, c. 7, s. 26; 1990, c. 59, s. 256; 1991, c. 8, s. 21; 1992, c. 1, s. 39; 1993, c. 64, s. 57; 1995, c. 1, s. 56; 1997, c. 3, s. 71; 1997, c. 14, s. 102; 1997, c. 85, s. 330; 1998, c. 16, s. 180; 2002, c. 40, s. 51; 2004, c. 8, s. 139; 2004, c. 21, s. 111; 2005, c. 23, s. 68; 2023, c. 19, s. 44.

2006-03-01

726.4.17.2. In this Title, the exploration base relating to certain Québec surface mining exploration expenses or oil and gas exploration expenses of an individual, at any time, means an amount equal to the amount by which the amount computed under section 726.4.17.3 is exceeded by 33 1/3% of the amount by which

(a)  the aggregate of the expenses, except those described in section 726.4.17.4, incurred in Québec by the individual before that time, and that are

i.  Canadian exploration expenses incurred by the individual after 31 December 1988 and that would be described in paragraph c of section 395 if the reference therein to “Canada”, wherever it appears, were a reference to “Québec”, described in paragraph d of the said section 395 if the reference therein to “expenses described in paragraphs a to b.1 and c to c.2” were replaced by a reference to “expenses that would be described in paragraph c, if the reference therein to “Canada”, wherever it appears, were a reference to “Québec””, or described in paragraph e of the said section 395 if the reference therein to “an expense described in paragraphs a to c.1” were replaced by a reference to “any expense that would be described in paragraph c, if the reference therein to “Canada”, wherever it appears, were a reference to “Québec””, except any of those expenses that are related to removing overburden and stripping, where such work is more than is needed to obtain indicators of mineralization or for the preliminary sampling thereof, or related to drilling and trenching or digging test pits, where such work constitutes underground exploration work, or

ii.  expenses referred to in subparagraph 1 or 2 of subparagraph i of paragraph a of section 726.4.10, incurred by the individual after 9 May 1996, other than expenses that would be referred to in subparagraph i if that subparagraph were read without reference to “, except any of those expenses that are related to removing overburden and stripping, where such work is more than is needed to obtain indicators of mineralization or for the preliminary sampling thereof, or related to drilling and trenching or digging test pits, where such work constitutes underground exploration work”; exceeds

(b)  the aggregate of all amounts of assistance, within the meaning of paragraph c.0.1 of section 359, which a person, including a partnership, has received, is entitled to receive or becomes, at any time, entitled to receive in respect of an expense referred to in paragraph a, to the extent that the assistance has not reduced the Canadian exploration expenses of the individual by reason of subparagraph a of the first paragraph of section 359.2 and is not an amount received, receivable or that became, at any time, entitled to be received under subsection 5 of section 127 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) in respect of a flow-through mining expenditure, within the meaning of subsection 9 of that section.

1990, c. 7, s. 26; 1990, c. 59, s. 256; 1991, c. 8, s. 21; 1992, c. 1, s. 39; 1993, c. 64, s. 57; 1995, c. 1, s. 56; 1997, c. 3, s. 71; 1997, c. 14, s. 102; 1997, c. 85, s. 330; 1998, c. 16, s. 180; 2002, c. 40, s. 51; 2004, c. 8, s. 139; 2004, c. 21, s. 111; 2005, c. 23, s. 68.