I-3 - Taxation Act

Section 372 Disposition versions

2006-03-01

372. In this chapter, the foreign exploration and development expenses of a taxpayer means

(a)  any exploration or drilling expense, including any general geological or geophysical expense, incurred by the taxpayer on or in respect of exploring or drilling for petroleum or natural gas outside Canada;

(b)  any expense incurred by the taxpayer for the purpose of determining the existence, location, extent or quality of a mineral resource outside Canada, including any expense incurred in the course of prospecting, carrying out geological, geophysical or geochemical surveys, drilling, trenching, digging test pits or preliminary sampling;

(c)  the cost to the taxpayer of any foreign resource property acquired by the taxpayer;

(d)  subject to section 418.37, the taxpayer’s share of the foreign exploration and development expenses incurred by a partnership in a fiscal period of the partnership, where the taxpayer was a member of the partnership at the end of that fiscal period; and

(e)  any annual payment made by the taxpayer for the preservation of a foreign resource property.

1972, c. 23, s. 339; 1975, c. 22, s. 77; 1980, c. 13, s. 31; 1990, c. 59, s. 159; 2004, c. 8, s. 64.