I-3 - Taxation Act

Section 372.1 Disposition versions

2006-03-01

372.1. A taxpayer’s foreign exploration and development expenses do not however include

(a)  any amount included at any time in the capital cost to the taxpayer of any depreciable property of a prescribed class;

(b)  an expenditure incurred at any time after the commencement of production from a foreign resource property of the taxpayer in order to evaluate the feasibility of a method of recovery of petroleum, natural gas or related hydrocarbons from the portion of a natural reservoir to which the foreign resource property relates;

(c)  an expenditure, other than a drilling expense, incurred at any time after the commencement of production from a foreign resource property of the taxpayer in order to assist in the recovery of petroleum, natural gas or related hydrocarbons from the portion of a natural reservoir to which the foreign resource property relates;

(d)  an expenditure incurred at any time relating to the injection of any substance to assist in the recovery of petroleum, natural gas or related hydrocarbons from a natural reservoir;

(e)  an expenditure that is the cost, or any part of the cost, to the taxpayer of any depreciable property of a prescribed class that was acquired after 21 December 2000;

(f)  foreign resource expenses in relation to a country; or

(g)  an expenditure incurred after 27 February 2000, unless the expenditure was incurred

i.  pursuant to an agreement in writing entered into by the taxpayer before 28 February 2000,

ii.  for the purpose of enabling the taxpayer to acquire foreign resource property,

iii.  for the purpose of enhancing the value of foreign resource property that the taxpayer owned at the time the expenditure was incurred or that the taxpayer had a reasonable expectation of owning after that time, or

iv.  for the purpose of assisting in evaluating whether a foreign resource property is to be acquired by the taxpayer.

1998, c. 16, s. 143; 2004, c. 8, s. 65.