I-3 - Taxation Act

Section 414 Disposition versions

2023-09-26

414. A development corporation carrying on a mining business may deduct, in computing its income for a taxation year, the aggregate of its cumulative Canadian development expenses at the end of the year and the amount by which the aggregate determined under subparagraph i of paragraph b of section 418.31.1 in respect of the corporation for the year exceeds the amount that would be determined in respect of the corporation for the year under paragraph e of section 330 if the aggregate last referred to in the said paragraph e were not taken into account.

Any other taxpayer may deduct in respect of a mining business, in computing income for a taxation year, the aggregate of the taxpayer’s cumulative Canadian development expenses at the end of the year and the amount by which the aggregate determined under subparagraph i of paragraph b of section 418.31.1 in respect of the taxpayer for the year exceeds the amount that would be determined in respect of the taxpayer for the year under paragraph e of section 330 if the aggregate last referred to in that paragraph e were not taken into account, without exceeding the greater of

(a)  the aggregate of the amounts that would be determined in respect of the taxpayer under subparagraphs a to d of the first paragraph of section 413, if no reference were made to “other” in subparagraph i of that subparagraph a and to “, other than Canadian development expenses incurred in Québec,” in subparagraph b of the third paragraph of that section and subparagraphs a to c of the fourth paragraph of that section; and

(b)  the amount by which the total of the aggregate of all amounts deducted in computing the taxpayer’s income for the year under section 357 in respect of a Canadian resource property or under section 358, as those sections apply in respect of a disposition made before 13 November 1981, and the aggregate of all amounts deducted for the year under section 88.4 of the Act respecting the application of the Taxation Act (chapter I-3), to the extent that that section refers to subsection 25 of section 29 of the Income Tax Application Rules (R.S.C. 1985, c. 2 (5th Suppl.)), sections 418.16 to 418.19 and section 418.21, that can reasonably be attributed to the amounts referred to in subparagraphs i to iii for the year, is exceeded by the total, before any deduction under section 88.4 of the Act respecting the application of the Taxation Act or any of sections 359 to 419.6, of

i.  his income for the year that may reasonably be attributed to the production of ore, other than iron or tar sands, from a resource property, processed to any stage that is not beyond the prime metal stage or its equivalent, the production of iron ore from a resource property, processed to any stage that is not beyond the pellet stage or its equivalent, and to any rental or royalty from a resource property, computed by reference to the amount or value of the production of ore;

ii.  the aggregate of the amounts included in computing the taxpayer’s income for the year under any of paragraphs b, d and e of section 330, other than any of the amounts referred to in subparagraph iii, but to the extent that paragraph b of that section refers to section 357, only the amounts deducted in computing the taxpayer’s income under that section 357 for the preceding taxation year in respect of a Canadian resource property may be taken into consideration, and

iii.  the aggregate of all amounts included in computing the taxpayer’s income for the year under paragraph e of section 330 that can reasonably be attributed to the disposition by the corporation, in the year or in a preceding taxation year, of any interest or right in a Canadian resource property, to the extent that the proceeds of disposition have not been included in computing an amount for a preceding taxation year under this subparagraph, subparagraph i of subparagraph a of the third paragraph of sections 418.16 and 418.18, subparagraph iii of subparagraph c of the first paragraph of section 418.20, section 418.28, or section 88.4 of the Act respecting the application of the Taxation Act, to the extent that that section refers to clause A of subparagraph i of paragraph d of subsection 25 of section 29 of the Income Tax Application Rules.

1977, c. 26, s. 45; 1978, c. 26, s. 73; 1980, c. 13, s. 43; 1982, c. 5, s. 101; 1986, c. 19, s. 85; 1989, c. 77, s. 45; 1993, c. 16, s. 161; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1998, c. 16, s. 154; 2021, c. 18, s. 40; 2023, c. 19, s. 30.

2021-06-04

414. A development corporation carrying on a mining business may deduct, in computing its income for a taxation year, the aggregate of its cumulative Canadian development expenses at the end of the year and the amount by which the aggregate determined under subparagraph i of paragraph b of section 418.31.1 in respect of the corporation for the year exceeds the amount that would be determined in respect of the corporation for the year under paragraph e of section 330 if the aggregate last referred to in the said paragraph e were not taken into account.

Any other taxpayer may deduct in respect of a mining business, in computing income for a taxation year, the aggregate of the taxpayer’s cumulative Canadian development expenses at the end of the year and the amount by which the aggregate determined under subparagraph i of paragraph b of section 418.31.1 in respect of the taxpayer for the year exceeds the amount that would be determined in respect of the taxpayer for the year under paragraph e of section 330 if the aggregate last referred to in that paragraph e were not taken into account, without exceeding the greater of

(a)  the aggregate of the amounts that would be determined in respect of the taxpayer under subparagraphs a to d of the first paragraph of section 413, if no reference were made to “other” in subparagraph i of that subparagraph a and to “, other than Canadian development expenses incurred in Québec,” in subparagraph b of the third paragraph of that section and subparagraphs a to c of the fourth paragraph of that section; and

(b)  the amount by which the total of the aggregate of all amounts deducted in computing the taxpayer’s income for the year under section 357 in respect of a Canadian resource property or under section 358 and the aggregate of all amounts deducted for the year under section 88.4 of the Act respecting the application of the Taxation Act (chapter I-3), to the extent that that section refers to subsection 25 of section 29 of the Income Tax Application Rules (R.S.C. 1985, c. 1 (5th Suppl.)), sections 418.16 to 418.19 and section 418.21, that can reasonably be attributed to the amounts referred to in subparagraphs i to iii for the year, is exceeded by the total, before any deduction under section 88.4 of the Act respecting the application of the Taxation Act or any of sections 359 to 419.6, of

i.  his income for the year that may reasonably be attributed to the production of ore, other than iron or tar sands, from a resource property, processed to any stage that is not beyond the prime metal stage or its equivalent, the production of iron ore from a resource property, processed to any stage that is not beyond the pellet stage or its equivalent, and to any rental or royalty from a resource property, computed by reference to the amount or value of the production of ore;

ii.  the aggregate of the amounts included in computing the taxpayer’s income for the year under any of paragraphs b, d and e of section 330, other than any of the amounts referred to in subparagraph iii, but to the extent that paragraph b of that section refers to section 357, only the amounts deducted in computing the taxpayer’s income under that section 357 for the preceding taxation year in respect of a Canadian resource property may be taken into consideration, and

iii.  the aggregate of all amounts included in computing the taxpayer’s income for the year under paragraph e of section 330 that can reasonably be attributed to the disposition by the corporation, in the year or in a preceding taxation year, of any interest or right in a Canadian resource property, to the extent that the proceeds of disposition have not been included in computing an amount for a preceding taxation year under this subparagraph, subparagraph i of subparagraph a of the third paragraph of sections 418.16 and 418.18, subparagraph iii of subparagraph c of the first paragraph of section 418.20, section 418.28, or section 88.4 of the Act respecting the application of the Taxation Act, to the extent that that section refers to clause A of subparagraph i of paragraph d of subsection 25 of section 29 of the Income Tax Application Rules.

1977, c. 26, s. 45; 1978, c. 26, s. 73; 1980, c. 13, s. 43; 1982, c. 5, s. 101; 1986, c. 19, s. 85; 1989, c. 77, s. 45; 1993, c. 16, s. 161; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1998, c. 16, s. 154; 2021, c. 18, s. 40.

2006-03-01

414. A development corporation carrying on a mining business may deduct, in computing its income for a taxation year, the aggregate of its cumulative Canadian development expenses at the end of the year and the amount by which the aggregate determined under subparagraph i of paragraph b of section 418.31.1 in respect of the corporation for the year exceeds the amount that would be determined in respect of the corporation for the year under paragraph e of section 330 if the aggregate last referred to in the said paragraph e were not taken into account.

Any other taxpayer may deduct in respect of a mining business, in computing his income for a taxation year, the aggregate of his cumulative Canadian development expenses at the end of the year and the amount by which the aggregate determined under subparagraph i of paragraph b of section 418.31.1 in respect of the taxpayer for the year exceeds the amount that would be determined in respect of the taxpayer for the year under paragraph e of section 330 if the aggregate last referred to in the said paragraph e were not taken into account, without exceeding the greater of

(a)  the aggregate of amounts that would be determined in his respect under subparagraphs a to c of the first paragraph of section 413, if account were not taken of the word “other” in subparagraph i of the said subparagraph a; and

(b)  the amount by which the total of the aggregate of all amounts deducted in computing the taxpayer’s income for the year under section 357 in respect of a Canadian resource property or under section 358 and the aggregate of all amounts deducted for the year under section 88.4 of the Act respecting the application of the Taxation Act (chapter I-4), to the extent that that section refers to subsection 25 of section 29 of the Income Tax Application Rules (Revised Statutes of Canada, 1985, chapter 2, 5th Supplement), sections 418.16 to 418.19 and section 418.21, that can reasonably be attributed to the amounts referred to in subparagraphs i to iii for the year, exceeds the total, before any deduction under section 88.4 of the Act respecting the application of the Taxation Act or any of sections 359 to 419.6, of

i.  his income for the year that may reasonably be attributed to the production of ore, other than iron or tar sands, from a resource property, processed to any stage that is not beyond the prime metal stage or its equivalent, the production of iron ore from a resource property, processed to any stage that is not beyond the pellet stage or its equivalent, and to any rental or royalty from a resource property, computed by reference to the amount or value of the production of ore;

ii.  the aggregate of the amounts included in computing his income for the year under paragraph b, d or e of section 330, other than any of the amounts contemplated in subparagraph iii, but to the extent that paragraph b of the said section refers to section 357, only the amounts deducted in computing his income under the said section 357 for the preceding taxation year in respect of the disposition of a Canadian resource property may be taken into consideration; and

iii.  the aggregate of all amounts included in computing the taxpayer’s income for the year under paragraph e of section 330 that can reasonably be attributed to the disposition by the corporation, in the year or in a preceding taxation year, of any interest or right in a Canadian resource property, to the extent that the proceeds of disposition have not been included in computing an amount for a preceding taxation year under this subparagraph, subparagraph i of subparagraph a of the third paragraph of sections 418.16 and 418.18, subparagraph iii of subparagraph c of the first paragraph of section 418.20, section 418.28, or section 88.4 of the Act respecting the application of the Taxation Act, to the extent that that section refers to clause A of subparagraph i of paragraph d of subsection 25 of section 29 of the Income Tax Application Rules.

1977, c. 26, s. 45; 1978, c. 26, s. 73; 1980, c. 13, s. 43; 1982, c. 5, s. 101; 1986, c. 19, s. 85; 1989, c. 77, s. 45; 1993, c. 16, s. 161; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1998, c. 16, s. 154.