I-3 - Taxation Act

Section 418.2 Disposition versions

2020-09-24

418.2. In sections 362 to 394, Divisions III and IV and this division, “Canadian oil and gas property expense of a taxpayer” means any cost or expense incurred after 11 December 1979, to the extent that the cost or expense is

(a)  despite section 144, the cost to the taxpayer of property described in any of paragraphs a, c and d of section 370 or in paragraph f of that section in respect of property described in any of paragraphs a, c and d of that section, including any payment for the preservation of a taxpayer’s rights in respect of such a property or an amount paid or, except for the application of this paragraph to a taxation year that begins after 31 December 2007, payable to Her Majesty in right of the Province of Saskatchewan as a net royalty payment pursuant to a net royalty petroleum and natural gas lease that was in effect on 31 March 1977 to the extent that such amount can reasonably be considered to be a cost of acquiring the lease, but excluding, except for the application of this paragraph to a taxation year that begins after 31 December 2007,

i.  any payment made to a person referred to in section 90 for the preservation of a taxpayer’s rights in respect of a Canadian resource property, and

ii.  any payment, other than a net royalty payment referred to in this paragraph, to which subsection 1 of section 144 applies by reason of paragraph b of that subsection;

(b)  subject to section 418.37, his share of any expense described in paragraph a incurred by a partnership in a fiscal period of the partnership of which he was a member at the end of that fiscal period, unless the taxpayer elects in respect of the share in prescribed form and manner on or before the day that is six months after the taxpayer’s taxation year in which that period ends; or

(c)  any cost or expense described in paragraph a incurred by the taxpayer pursuant to an agreement in writing with a corporation entered into before 1 January 1987, under which the taxpayer incurred the cost or expense solely as consideration for a share, except a prescribed share, of the capital stock of the corporation issued to him or any right in or to such a share.

1982, c. 5, s. 103; 1984, c. 15, s. 91; 1986, c. 19, s. 88; 1988, c. 18, s. 41; 1990, c. 59, s. 165; 1994, c. 22, s. 154; 1997, c. 3, s. 71; 1998, c. 16, s. 156; 2005, c. 1, s. 98; 2015, c. 24, s. 72; 2020, c. 16, s. 189.

2015-10-26

418.2. In sections 362 to 394, Divisions III and IV and this division, “Canadian oil and gas property expense of a taxpayer” means any cost or expense incurred after 11 December 1979, to the extent that the cost or expense is

(a)  despite section 144, the cost to the taxpayer of property described in any of paragraphs a, c and d of section 370 or in paragraph f of that section in respect of property described in any of paragraphs a, c and d of that section, including any payment for the preservation of a taxpayer’s rights in respect of such a property or an amount paid or, except for the application of this paragraph to a taxation year that begins after 31 December 2007, payable to Her Majesty in right of the Province of Saskatchewan as a net royalty payment pursuant to a net royalty petroleum and natural gas lease that was in effect on 31 March 1977 to the extent that such amount can reasonably be considered to be a cost of acquiring the lease, but excluding, except for the application of this paragraph to a taxation year that begins after 31 December 2007,

i.  any payment made to a person referred to in section 90 for the preservation of a taxpayer’s rights in respect of a Canadian resource property, and

ii.  any payment, other than a net royalty payment referred to in this paragraph, to which subsection 1 of section 144 applies by reason of paragraph b of that subsection;

(b)  subject to section 418.37, his share of any expense described in paragraph a incurred by a partnership in a fiscal period of the partnership of which he was a member at the end of that fiscal period, unless the taxpayer elects in respect of the share in prescribed form and manner on or before the day that is six months after the taxpayer’s taxation year in which that period ends; or

(c)  any cost or expense described in paragraph a incurred by the taxpayer pursuant to an agreement in writing with a corporation entered into before 1 January 1987, under which the taxpayer incurred the cost or expense solely as consideration for a share, except a prescribed share, of the capital stock of the corporation issued to him or any interest in or right to such a share.

1982, c. 5, s. 103; 1984, c. 15, s. 91; 1986, c. 19, s. 88; 1988, c. 18, s. 41; 1990, c. 59, s. 165; 1994, c. 22, s. 154; 1997, c. 3, s. 71; 1998, c. 16, s. 156; 2005, c. 1, s. 98; 2015, c. 24, s. 72.

2006-03-01

418.2. In sections 362 to 394, Divisions III and IV and this division, “Canadian oil and gas property expense of a taxpayer” means any cost or expense incurred after 11 December 1979, to the extent that the cost or expense is

(a)  notwithstanding section 144, the cost to the taxpayer of property described in any of paragraphs a, c and d of section 370 or in paragraph f of that section in respect of property described in any of paragraphs a, c and d of that section, including any payment for the preservation of a taxpayer’s rights in respect of such a property or an amount paid or, except for the application of this paragraph to a taxation year that begins after 31 December 2006, payable to Her Majesty in right of the Province of Saskatchewan as a net royalty payment pursuant to a net royalty petroleum and natural gas lease that was in effect on 31 March 1977 to the extent that such payment can reasonably be considered to be a cost of acquiring the lease, but excluding, except for the application of this paragraph to a taxation year that begins after 31 December 2006,

i.  any payment made to a person referred to in section 90 for the preservation of a taxpayer’s rights in respect of a Canadian resource property, and

ii.  any payment, other than a net royalty payment referred to in this paragraph, to which subsection 1 of section 144 applies by reason of paragraph b of that subsection;

(b)  subject to section 418.37, his share of any expense described in paragraph a incurred by a partnership in a fiscal period of the partnership of which he was a member at the end of that fiscal period, unless the taxpayer elects in respect of the share in prescribed form and manner on or before the day that is six months after the taxpayer’s taxation year in which that period ends; or

(c)  any cost or expense described in paragraph a incurred by the taxpayer pursuant to an agreement in writing with a corporation entered into before 1 January 1987, under which the taxpayer incurred the cost or expense solely as consideration for a share, except a prescribed share, of the capital stock of the corporation issued to him or any interest in or right to such a share.

1982, c. 5, s. 103; 1984, c. 15, s. 91; 1986, c. 19, s. 88; 1988, c. 18, s. 41; 1990, c. 59, s. 165; 1994, c. 22, s. 154; 1997, c. 3, s. 71; 1998, c. 16, s. 156; 2005, c. 1, s. 98.