16.12. The amount that an operator is required to deduct as a post-production development allowance, (1) in computing its annual profit for its fiscal year that ends after 30 March 2010 and includes that date, under subparagraph e.3 of paragraph 2 of section 8, as it read on 30 March 2010, is equal to the lesser of
(a) 30% of its total cumulative post-production development expenses at the end of the fiscal year in respect of each of its mines, and
(b) its annual profit, determined without reference to subparagraphs e to h.1 and j of paragraph 2 of section 8, as they read on 30 March 2010; and
(2) in computing its annual earnings from a mine for a fiscal year that begins after 30 March 2010 under subparagraph c of subparagraph 2 of the fourth paragraph of section 8, is equal to the lesser of
(a) 30% of its cumulative post-production development expenses, at the end of the fiscal year, in respect of the mine, and
(b) its annual earnings from the mine for the fiscal year, determined without reference to subparagraphs c to e, g and h of subparagraph 2 of the fourth paragraph of section 8.
For the purposes of the first paragraph, when the operator’s fiscal year has less than 365 days, the 30% rate specified in subparagraph a of subparagraphs 1 and 2 of that first paragraph must be reduced by the proportion of that percentage that the number of days by which 365 exceeds the number of days in the fiscal year is of 365.