I-3 - Taxation Act

Section 418.1.1 Disposition versions

2006-03-01

418.1.1. In this chapter, the foreign resource expense of a taxpayer, in relation to a country other than Canada, 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 in that country;

(b)  any expense incurred by the taxpayer for the purpose of determining the existence, location, extent or quality of a mineral resource in that country, 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 of the taxpayer’s foreign resource properties in relation to that country;

(d)  any annual payment made by the taxpayer for the preservation of a foreign resource property in relation to that country; and

(e)  subject to section 418.37, the taxpayer’s share of an expense, cost or payment described in any of paragraphs a to d that is incurred or made by a partnership in a fiscal period of the partnership that begins after 31 December 2000, where the taxpayer was a member of the partnership at the end of that fiscal period.

2004, c. 8, s. 79.