Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
CANADIAN EXPLORATION EXPENSE
QUESTION 19
Is it Revenue Canada's belief that absent the deductions permitted in respect of Canadian Exploration Expense ("CEE"), Canadian Development Expense ("CDE") and Canadian Oil and Gas Property Expense ("COGPE") in sections 66.1, 66.2 and 66.4 of the Act respectively, that no deduction would be permitted in respect of such outlays or expenses, by virtue of paragraph 18(1)(b) of the Act?
DEPARTMENT'S POSITION
Whether or not a particular cost or expense included in CEE, CDE or COGPE would be deductible in the absence of the relevant provisions of the sections of the Act referred to above is a question of fact. Such expenditures which were capital in nature would, as you have noted, not be deductible pursuant to the provisions of paragraph 18(1)(b) of the Act. In addition, it would have to be considered whether the general limitation on deductibility contained in paragraph 18(1)(a) of the Act or a specific prohibition, e.g., paragraph 18(1)(m) of the Act with regard to royalties, was applicable with regard to any such expenditures.
CPTS June 17, 1993
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1993
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1993
Email this Content