I-3 - Taxation Act

Section 412 Disposition versions

2020-09-24

412. The amounts required to be deducted in computing the cumulative Canadian development expenses of a taxpayer at the time referred to in section 411 are the aggregate of:

(a)  all amounts deducted in computing his income for a taxation year ending before that time in respect of such expenses;

(b)  all amounts each of which is, in respect of the disposition by the taxpayer before that time of a property described in any of paragraphs b, d.1 and e of section 370, of a property disposed of after 21 March 2011 which was described in any of those paragraphs and the cost of which when acquired by the taxpayer was included in the Canadian development expense of the taxpayer, or of any right in or to such a property, other than such a right that the taxpayer has by reason of being a beneficiary under a trust or a member of a partnership, equal to the amount by which

i.  the amount by which the proceeds of disposition in respect of the property that became receivable by the taxpayer before that time but after 6 May 1974 in the case of an oil business or after 31 March 1975 in the case of a mining business, exceed the aggregate of the outlays or expenses that the taxpayer made or incurred before that time but after 6 May 1974 in the case of an oil business or after 31 March 1975 in the case of a mining business for the purpose of making the disposition and that were not otherwise deductible for the purposes of this Part, exceeds

ii.  the amount by which the amount determined under the first paragraph of section 412.1 exceeds the amount determined under the second paragraph of that section;

iii.  (subparagraph repealed);

(c)  all amounts that become receivable by him before that time that are required to be deducted in computing such expenses under this paragraph by virtue of section 387 or 392;

(d)  all amounts included by him under paragraph a of section 408 for a previous taxation year that have become Canadian exploration expenses of the taxpayer by virtue of paragraph b of section 395;

(d.1)  all amounts that became, before that time, Canadian exploration expenses of the taxpayer by virtue of section 399.3;

(e)  all amounts paid to him after 6 May 1974 in the case of an oil business, or after 31 March 1975 in the case of a mining business, and before 25 May 1976 as a subsidy, a grant or assistance received under an Act, in respect of Canadian development expenses, to the extent provided by the regulations;

(f)  all amounts received by the taxpayer before that time in respect of a debt referred to in paragraph c of section 411;

(g)  the amount by which the aggregate of all amounts determined under section 418.12 in respect of a taxation year of the taxpayer ending at or before that time, in this paragraph referred to as the “relevant time”, exceeds the aggregate of all amounts each of which is the least of

i.  the amount that would be determined under the second paragraph of section 418.19, at a time, in this paragraph referred to as the “particular time”, that is the end of the latest taxation year of the taxpayer ending at or before the relevant time, in respect of the taxpayer as a corporation referred to in that section 418.19 in respect of a disposition, in this paragraph referred to as the “original disposition”, of Canadian resource property by a person who is an original owner of the property because of the original disposition, if

(1)  where the taxpayer has disposed of all or part of the property in circumstances in which section 418.19 applied, that section continued to apply to the taxpayer in respect of the original disposition as if each of the subsequent corporations contemplated in that section 418.19 were the same person as the taxpayer, and

(2)  each designation made under subparagraph 1 of subparagraph ii of subparagraph b of the second paragraph of section 418.19 in respect of an amount that became receivable before the particular time were made before the particular time;

ii.  the amount by which the aggregate of all amounts each of which became receivable at or before the particular time and before 1 January 1993 by the taxpayer and is included in computing the amount determined under subparagraph b of the second paragraph of section 418.21 in respect of the original disposition exceeds the amount by which

(1)  where the taxpayer disposed of all or part of the property before the particular time in circumstances in which section 418.21 applied, the amount that would be determined at the particular time under subparagraph a of the second paragraph of section 418.21 in respect of the original disposition if that subparagraph continued to apply to the taxpayer in respect of the original disposition as if each of the subsequent corporations contemplated in that section 418.21 were the same person as the taxpayer or, in any other case, the amount determined at the particular time under subparagraph a of the second paragraph of section 418.21 in respect of the original disposition, exceeds

(2)  the amount that would be determined at the particular time under subparagraph b of the second paragraph of section 418.21 in respect of the original disposition if that subparagraph were read without reference to the words “or by the corporation” or “or the corporation”, wherever they appear therein, and if amounts that became receivable after 31 December 1992 were not taken into account; and

iii.  nil, where

(1)  after the original disposition and at or before the particular time, the taxpayer disposed of all or part of the property in circumstances in which section 418.19 applied, otherwise than by way of an amalgamation or merger or solely because of the application of subparagraph a of the first paragraph of section 418.26, and

(2)  the winding-up of the taxpayer began at or before the relevant time or the taxpayer’s disposition referred to in subparagraph 1, other than a disposition under an agreement in writing entered into before 22 December 1992, occurred after 21 December 1992;

(h)  all amounts of assistance that he has received or is entitled to receive in respect of any Canadian development expense, including any amount that has become a Canadian exploration expense of the taxpayer by virtue of section 399.3, incurred after 31 December 1980 or that can reasonably be related to Canadian development activities after that date;

(h.1)  all amounts by which his cumulative Canadian development expense is required, because of section 485.8, to be reduced at or before that time;

(i)  all amounts required to be deducted before that time under section 392.3 in computing his cumulative Canadian development expenses;

(j)  any amount that is required to be deducted before that time under paragraph c of section 418.31 in computing his cumulative Canadian development expense.

1975, c. 22, s. 90; 1977, c. 26, s. 44; 1980, c. 13, s. 42; 1982, c. 5, s. 99; 1984, c. 15, s. 90; 1985, c. 25, s. 77; 1986, c. 19, s. 84; 1987, c. 67, s. 93; 1988, c. 18, s. 37; 1989, c. 77, s. 44; 1995, c. 49, s. 105; 1996, c. 39, s. 112; 1997, c. 3, s. 71; 2004, c. 8, s. 78; 2009, c. 5, s. 131; 2012, c. 8, s. 55; 2020, c. 16, s. 66.

2012-05-09

412. The amounts required to be deducted in computing the cumulative Canadian development expenses of a taxpayer at the time referred to in section 411 are the aggregate of:

(a)  all amounts deducted in computing his income for a taxation year ending before that time in respect of such expenses;

(b)  all amounts each of which is, in respect of the disposition by the taxpayer before that time of a property described in any of paragraphs b, d.1 and e of section 370, of a property disposed of after 21 March 2011 which was described in any of those paragraphs and the cost of which when acquired by the taxpayer was included in the Canadian development expense of the taxpayer, or of any right or interest relating to such a property, other than such a right or an interest that the taxpayer has by reason of being a beneficiary under a trust or a member of a partnership, equal to the amount by which

i.  the amount by which the proceeds of disposition in respect of the property that became receivable by the taxpayer before that time but after 6 May 1974 in the case of an oil business or after 31 March 1975 in the case of a mining business, exceed the aggregate of the outlays or expenses that the taxpayer made or incurred before that time but after 6 May 1974 in the case of an oil business or after 31 March 1975 in the case of a mining business for the purpose of making the disposition and that were not otherwise deductible for the purposes of this Part, exceeds

ii.  the amount by which the amount determined under the first paragraph of section 412.1 exceeds the amount determined under the second paragraph of that section;

iii.  (subparagraph repealed);

(c)  all amounts that become receivable by him before that time that are required to be deducted in computing such expenses under this paragraph by virtue of section 387 or 392;

(d)  all amounts included by him under paragraph a of section 408 for a previous taxation year that have become Canadian exploration expenses of the taxpayer by virtue of paragraph b of section 395;

(d.1)  all amounts that became, before that time, Canadian exploration expenses of the taxpayer by virtue of section 399.3;

(e)  all amounts paid to him after 6 May 1974 in the case of an oil business, or after 31 March 1975 in the case of a mining business, and before 25 May 1976 as a subsidy, a grant or assistance received under an Act, in respect of Canadian development expenses, to the extent provided by the regulations;

(f)  all amounts received by the taxpayer before that time in respect of a debt referred to in paragraph c of section 411;

(g)  the amount by which the aggregate of all amounts determined under section 418.12 in respect of a taxation year of the taxpayer ending at or before that time, in this paragraph referred to as the “relevant time”, exceeds the aggregate of all amounts each of which is the least of

i.  the amount that would be determined under the second paragraph of section 418.19, at a time, in this paragraph referred to as the “particular time”, that is the end of the latest taxation year of the taxpayer ending at or before the relevant time, in respect of the taxpayer as a corporation referred to in that section 418.19 in respect of a disposition, in this paragraph referred to as the “original disposition”, of Canadian resource property by a person who is an original owner of the property because of the original disposition, if

(1)  where the taxpayer has disposed of all or part of the property in circumstances in which section 418.19 applied, that section continued to apply to the taxpayer in respect of the original disposition as if each of the subsequent corporations contemplated in that section 418.19 were the same person as the taxpayer, and

(2)  each designation made under subparagraph 1 of subparagraph ii of subparagraph b of the second paragraph of section 418.19 in respect of an amount that became receivable before the particular time were made before the particular time;

ii.  the amount by which the aggregate of all amounts each of which became receivable at or before the particular time and before 1 January 1993 by the taxpayer and is included in computing the amount determined under subparagraph b of the second paragraph of section 418.21 in respect of the original disposition exceeds the amount by which

(1)  where the taxpayer disposed of all or part of the property before the particular time in circumstances in which section 418.21 applied, the amount that would be determined at the particular time under subparagraph a of the second paragraph of section 418.21 in respect of the original disposition if that subparagraph continued to apply to the taxpayer in respect of the original disposition as if each of the subsequent corporations contemplated in that section 418.21 were the same person as the taxpayer or, in any other case, the amount determined at the particular time under subparagraph a of the second paragraph of section 418.21 in respect of the original disposition, exceeds

(2)  the amount that would be determined at the particular time under subparagraph b of the second paragraph of section 418.21 in respect of the original disposition if that subparagraph were read without reference to the words “or by the corporation” or “or the corporation”, wherever they appear therein, and if amounts that became receivable after 31 December 1992 were not taken into account; and

iii.  nil, where

(1)  after the original disposition and at or before the particular time, the taxpayer disposed of all or part of the property in circumstances in which section 418.19 applied, otherwise than by way of an amalgamation or merger or solely because of the application of subparagraph a of the first paragraph of section 418.26, and

(2)  the winding-up of the taxpayer began at or before the relevant time or the taxpayer’s disposition referred to in subparagraph 1, other than a disposition under an agreement in writing entered into before 22 December 1992, occurred after 21 December 1992;

(h)  all amounts of assistance that he has received or is entitled to receive in respect of any Canadian development expense, including any amount that has become a Canadian exploration expense of the taxpayer by virtue of section 399.3, incurred after 31 December 1980 or that can reasonably be related to Canadian development activities after that date;

(h.1)  all amounts by which his cumulative Canadian development expense is required, because of section 485.8, to be reduced at or before that time;

(i)  all amounts required to be deducted before that time under section 392.3 in computing his cumulative Canadian development expenses;

(j)  any amount that is required to be deducted before that time under paragraph c of section 418.31 in computing his cumulative Canadian development expense.

1975, c. 22, s. 90; 1977, c. 26, s. 44; 1980, c. 13, s. 42; 1982, c. 5, s. 99; 1984, c. 15, s. 90; 1985, c. 25, s. 77; 1986, c. 19, s. 84; 1987, c. 67, s. 93; 1988, c. 18, s. 37; 1989, c. 77, s. 44; 1995, c. 49, s. 105; 1996, c. 39, s. 112; 1997, c. 3, s. 71; 2004, c. 8, s. 78; 2009, c. 5, s. 131; 2012, c. 8, s. 55.

2009-05-15

412. The amounts required to be deducted in computing the cumulative Canadian development expenses of a taxpayer at the time referred to in section 411 are the aggregate of:

(a)  all amounts deducted in computing his income for a taxation year ending before that time in respect of such expenses;

(b)  all amounts each of which is, in respect of the disposition by the taxpayer before that time of any property contemplated in paragraph b, d.1 or e of section 370 or paragraph f of section 370 in respect of any property contemplated in paragraph b, d.1 or e of that section, is equal to the amount by which

i.  the amount by which the proceeds of disposition in respect of the property that became receivable by the taxpayer before that time but after 6 May 1974 in the case of an oil business or after 31 March 1975 in the case of a mining business, exceed the aggregate of the outlays or expenses that the taxpayer made or incurred before that time but after 6 May 1974 in the case of an oil business or after 31 March 1975 in the case of a mining business for the purpose of making the disposition and that were not otherwise deductible for the purposes of this Part, exceeds

ii.  the amount by which the amount determined under the first paragraph of section 412.1 exceeds the amount determined under the second paragraph of that section;

iii.  (subparagraph repealed);

(c)  all amounts that become receivable by him before that time that are required to be deducted in computing such expenses under this paragraph by virtue of section 387 or 392;

(d)  all amounts included by him under paragraph a of section 408 for a previous taxation year that have become Canadian exploration expenses of the taxpayer by virtue of paragraph b of section 395;

(d.1)  all amounts that became, before that time, Canadian exploration expenses of the taxpayer by virtue of section 399.3;

(e)  all amounts paid to him after 6 May 1974 in the case of an oil business, or after 31 March 1975 in the case of a mining business, and before 25 May 1976 as a subsidy, a grant or assistance received under an Act, in respect of Canadian development expenses, to the extent provided by the regulations;

(f)  all amounts received by the taxpayer before that time in respect of a debt referred to in paragraph c of section 411;

(g)  the amount by which the aggregate of all amounts determined under section 418.12 in respect of a taxation year of the taxpayer ending at or before that time, in this paragraph referred to as the “relevant time”, exceeds the aggregate of all amounts each of which is the least of

i.  the amount that would be determined under the second paragraph of section 418.19, at a time, in this paragraph referred to as the “particular time”, that is the end of the latest taxation year of the taxpayer ending at or before the relevant time, in respect of the taxpayer as a corporation referred to in that section 418.19 in respect of a disposition, in this paragraph referred to as the “original disposition”, of Canadian resource property by a person who is an original owner of the property because of the original disposition, if

(1)  where the taxpayer has disposed of all or part of the property in circumstances in which section 418.19 applied, that section continued to apply to the taxpayer in respect of the original disposition as if each of the subsequent corporations contemplated in that section 418.19 were the same person as the taxpayer, and

(2)  each designation made under subparagraph 1 of subparagraph ii of subparagraph b of the second paragraph of section 418.19 in respect of an amount that became receivable before the particular time were made before the particular time;

ii.  the amount by which the aggregate of all amounts each of which became receivable at or before the particular time and before 1 January 1993 by the taxpayer and is included in computing the amount determined under subparagraph b of the second paragraph of section 418.21 in respect of the original disposition exceeds the amount by which

(1)  where the taxpayer disposed of all or part of the property before the particular time in circumstances in which section 418.21 applied, the amount that would be determined at the particular time under subparagraph a of the second paragraph of section 418.21 in respect of the original disposition if that subparagraph continued to apply to the taxpayer in respect of the original disposition as if each of the subsequent corporations contemplated in that section 418.21 were the same person as the taxpayer or, in any other case, the amount determined at the particular time under subparagraph a of the second paragraph of section 418.21 in respect of the original disposition, exceeds

(2)  the amount that would be determined at the particular time under subparagraph b of the second paragraph of section 418.21 in respect of the original disposition if that subparagraph were read without reference to the words “or by the corporation” or “or the corporation”, wherever they appear therein, and if amounts that became receivable after 31 December 1992 were not taken into account; and

iii.  nil, where

(1)  after the original disposition and at or before the particular time, the taxpayer disposed of all or part of the property in circumstances in which section 418.19 applied, otherwise than by way of an amalgamation or merger or solely because of the application of subparagraph a of the first paragraph of section 418.26, and

(2)  the winding-up of the taxpayer began at or before the relevant time or the taxpayer’s disposition referred to in subparagraph 1, other than a disposition under an agreement in writing entered into before 22 December 1992, occurred after 21 December 1992;

(h)  all amounts of assistance that he has received or is entitled to receive in respect of any Canadian development expense, including any amount that has become a Canadian exploration expense of the taxpayer by virtue of section 399.3, incurred after 31 December 1980 or that can reasonably be related to Canadian development activities after that date;

(h.1)  all amounts by which his cumulative Canadian development expense is required, because of section 485.8, to be reduced at or before that time;

(i)  all amounts required to be deducted before that time under section 392.3 in computing his cumulative Canadian development expenses;

(j)  any amount that is required to be deducted before that time under paragraph c of section 418.31 in computing his cumulative Canadian development expense.

1975, c. 22, s. 90; 1977, c. 26, s. 44; 1980, c. 13, s. 42; 1982, c. 5, s. 99; 1984, c. 15, s. 90; 1985, c. 25, s. 77; 1986, c. 19, s. 84; 1987, c. 67, s. 93; 1988, c. 18, s. 37; 1989, c. 77, s. 44; 1995, c. 49, s. 105; 1996, c. 39, s. 112; 1997, c. 3, s. 71; 2004, c. 8, s. 78; 2009, c. 5, s. 131.

2006-03-01

412. The amounts required to be deducted in computing the cumulative Canadian development expenses of a taxpayer at the time referred to in section 411 are the aggregate of:

(a)  all amounts deducted in computing his income for a taxation year ending before that time in respect of such expenses;

(b)  all amounts each of which is, in respect of the disposition by the taxpayer before that time of any property contemplated in paragraph b, d.1 or e of section 370 or paragraph f of section 370 in respect of any property contemplated in paragraph b, d.1 or e of that section, is equal to the amount by which

i.  the amount by which the proceeds of disposition in respect of the property that became receivable by the taxpayer before that time but after 6 May 1974 in the case of an oil business or after 31 March 1975 in the case of a mining business, exceed the aggregate of the outlays or expenses that the taxpayer made or incurred before that time but after 6 May 1974 in the case of an oil business or after 31 March 1975 in the case of a mining business for the purpose of making the disposition and that were not otherwise deductible for the purposes of this Part, exceeds

ii.  the amount by which the amount determined under the first paragraph of section 412.1 exceeds the amount determined under the second paragraph of that section;

iii.  (subparagraph repealed);

(c)  all amounts that become receivable by him before that time that are required to be deducted in computing such expenses under this paragraph by virtue of section 387 or 392;

(d)  all amounts included by him under paragraph a of section 408 for a previous taxation year that have become Canadian exploration expenses of the taxpayer by virtue of paragraph b of section 395;

(d.1)  all amounts that became, before that time, Canadian exploration expenses of the taxpayer by virtue of section 399.3;

(e)  all amounts paid to him after 6 May 1974 in the case of an oil business, or after 31 March 1975 in the case of a mining business, and before 25 May 1976 as a subsidy, a grant or assistance received under an Act, in respect of Canadian development expenses, to the extent provided by the regulations;

(f)  all amounts received by the taxpayer before that time in respect of a debt referred to in paragraph c of section 411;

(g)  the amount by which the aggregate of all amounts determined under section 418.12 in respect of a taxation year of the taxpayer ending at or before that time, in this paragraph referred to as the “relevant time”, exceeds the aggregate of all amounts each of which is the least of

i.  the amount that would be determined under the second paragraph of section 418.19, at a time, in this paragraph referred to as the “particular time”, that is the end of the latest taxation year of the taxpayer ending at or before the relevant time, in respect of the taxpayer as a corporation referred to in that section 418.19 in respect of a disposition, in this paragraph referred to as the “original disposition”, of Canadian resource property by a person who is an original owner of the property because of the original disposition, if

(1)  where the taxpayer has disposed of all or part of the property in circumstances in which section 418.19 applied, that section continued to apply to the taxpayer in respect of the original disposition as if each of the subsequent corporations contemplated in that section 418.19 were the same person as the taxpayer, and

(2)  each designation made under subparagraph 1 of subparagraph ii of subparagraph b of the second paragraph of section 418.19 in respect of an amount that became receivable before the particular time were made before the particular time;

ii.  the amount by which the aggregate of all amounts each of which became receivable at or before the particular time and before 1 January 1993 by the taxpayer and is included in computing the amount determined under subparagraph b of the second paragraph of section 418.21 in respect of the original disposition exceeds the amount by which

(1)  where the taxpayer disposed of all or part of the property before the particular time in circumstances in which section 418.21 applied, the amount that would be determined at the particular time under subparagraph a of the second paragraph of section 418.21 in respect of the original disposition if that subparagraph continued to apply to the taxpayer in respect of the original disposition as if each of the subsequent corporations contemplated in that section 418.21 were the same person as the taxpayer or, in any other case, the amount determined at the particular time under subparagraph a of the second paragraph of section 418.21 in respect of the original disposition, exceeds

(2)  the amount that would be determined at the particular time under subparagraph b of the second paragraph of section 418.21 in respect of the original disposition if that subparagraph were read without reference to the words “or by the corporation” or “or the corporation”, wherever they appear therein, and if amounts that became receivable after 31 December 1992 were not taken into account; and

iii.  nil, where

(1)  after the original disposition and at or before the particular time, the taxpayer disposed of all or part of the property in circumstances in which section 418.19 applied, otherwise than by way of an amalgamation or merger or solely because of the application of paragraph a of section 418.26, and

(2)  the winding-up of the taxpayer began at or before the relevant time or the taxpayer’s disposition referred to in subparagraph 1, other than a disposition under an agreement in writing entered into before 22 December 1992, occurred after 21 December 1992;

(h)  all amounts of assistance that he has received or is entitled to receive in respect of any Canadian development expense, including any amount that has become a Canadian exploration expense of the taxpayer by virtue of section 399.3, incurred after 31 December 1980 or that can reasonably be related to Canadian development activities after that date;

(h.1)  all amounts by which his cumulative Canadian development expense is required, because of section 485.8, to be reduced at or before that time;

(i)  all amounts required to be deducted before that time under section 392.3 in computing his cumulative Canadian development expenses;

(j)  any amount that is required to be deducted before that time under paragraph c of section 418.31 in computing his cumulative Canadian development expense.

1975, c. 22, s. 90; 1977, c. 26, s. 44; 1980, c. 13, s. 42; 1982, c. 5, s. 99; 1984, c. 15, s. 90; 1985, c. 25, s. 77; 1986, c. 19, s. 84; 1987, c. 67, s. 93; 1988, c. 18, s. 37; 1989, c. 77, s. 44; 1995, c. 49, s. 105; 1996, c. 39, s. 112; 1997, c. 3, s. 71; 2004, c. 8, s. 78.