  Resources |
If the corporation is claiming the deduction of an allowance for mining and mineral processing, or an earned depletion allowance, use the keyword Resource to specify the relevant type of resource pool.
The following options are applicable for the keyword Resource.
Exploration expenses Exploration expenses are 100% deductible against net income for tax purposes.
Oil & gas property expenses 10% of oil and gas property expenses are deductible against net income for tax purposes. The deduction is prorated over days in the year for short taxation years (less than 51 weeks).
Development expenses (mining/other corporation) Development expenses in the case of a corporation operating a mining business ou another corporation.
Development expenses (oil business) - Federal/Alberta Development expenses in the case of a development corporation operating an oil business.
Development expenses in QC (oil business) - Quebec Development expenses incurred in Quebec in the case of a development corporation operating an oil business.
Development expense elsewhere in CA (oil business) - QC Development expenses elsewhere in Canada in the case of a development corporation operating an oil business.
Foreign explor. & development expenses 10% of foreign exploration & development expenses are deductible against net income for tax purposes. The deduction is prorated over days in the year for short taxation years (less than 51 weeks). The deduction is also limited to foreign resource income: when foreign resource income is less than the allowed 10% deduction, an additional deduction can be claimed so that 10% is claimed.
Foreign resource expenses For regular foreign resource expenses, 10% of the amount available should be deductible from net income for tax purposes. For expenses incurred by a successor, 30% of the amount available is deductible but could be limited to foreign resource income. For shorter taxation years (less than 51 weeks), the deduction is prorated based on the number of days in the year.
Earned depletion base Earned depletion base (EDB) is 100% deductible against net income for tax purposes.
The deduction is limited to the lesser of:
(i) the EDB available before any current year deductions and
(ii) 25% of resource profits.
Mining exploration depletion base Mining exploration depletion base (MEDB) is 100% deductible against net income for tax.
The deduction is limited to:
the lesser of (i) 25% of income for tax purposes before any earned
depletion deduction less the earned depletion
claimed
and
(ii) the MEDB pool available.
Other foreign explor. & development expenses
Select
 See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 201 - Reconciliation
Line 212 - Resource-related deductions
Use the keyword Mining.r to indicate whether or not the corporation is operating a mining business (or if it is holding flow-through shares of such a corporation, or is a member of a partnership holding such shares) to calculate the deduction that the corporation may claim under section 414.
The following options are applicable for the keyword Mining.r.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 201 - Reconciliation
Line 212 - Resource-related deductions
If this resource pool is for foreign resource expenditures, you can enter the country where the expenditures were incurred.
Enter this resource pool balance of undeducted resource expenditures as at the beginning of the taxation year in ResourcePool. This amount will print on the resource section related to this resource pool.
The following options are applicable for the keyword ResourcePool.
Use [Alt-J] to enter different values for other jurisdictions.
Use the keyword ResourceAdd to specify the type and amount of the addition to the resource pool for this taxation year.
The following options are applicable for the keyword ResourceAdd.
Acquired upon amalg. or winding-up of subsidiary Resource pool addition acquired upon amalgamation or winding-up of a subsidiary.
Other than upon amalg. or winding-up of sub. Resource pool addition not acquired upon amalgamation or winding-up of a subsidiary.
Curr. yr accel. res. exp. excl. look-back rule before 2024 Current year accelerated expenses excluding expenses incurred under look-back rule incurred before 2024 during the tax year.
Curr. yr accel. res. exp. excl. look-back rule after 2023 Current year accelerated expenses excluding expenses incurred under look-back rule incurred after 2023 during the tax year.
Curr. yr accel. res. exp. under look-back rule before 2024 Current year accelerated expenses incurred under look-back rule incurred before 2024 during the tax year.
Curr. yr accel. res. exp. under look-back rule after 2023 Current year accelerated expenses incurred under look-back rule incurred after 2023 during the tax year.
Current year resource expenses - QC
Current year resource expenses Current year resource expenses net of any recoveries.
Current year accelerated resource expenses before 2024 Accelerated expenses incurred before 2024 during the tax year.
Current year accelerated resource expenses after 2023 Accelerated expenses incurred after 2023 during the tax year.
Current yr expenses (excluding exp. under look-back rule) Current year expenses excluding expenses incurred under look-back rule.
Current yr expenses under look-back rule Current year expenses under look-back rule under subsection 66(12.66) of the Income Tax Act.
Reclassified Canadian development expenses Reclassified Canadian development expenses pursuant to subsections 66.1(9) and 66.7(9) of the ITA.
Canadian renewable and conservation expenses Canadian renewable and conservation expenses.
Government assistance - QC Government assistance that has been repaid in the tax year and has reduced the CCOGPE from a previous taxation year.
Other additions Other types of resource pool additions.
Use [Alt-J] to enter different values for other jurisdictions.
Use the keyword ResourceDed to specify the type and amount of the deduction to the resource pool for this taxation year.
The following options are applicable for the keyword ResourceDed.
Transferred-disp. of resource prop. to successor
Pursuant to regulation 1202(2) Regulation 1202(2) stipulates that the earned depletion claim must be limited to 25% of the income attributable to the properties acquired from the original owner.
Pursuant to regulation 1201 Regulation 1201 stipulates that the earned depletion claim must be limited to 25% of the resource profits and the amount of recaptured earned depletion included in income.
Pursuant to regulation 1203(1)
Government assistance and grants
Other deductions
Current & previous yr expenses renounced
Current & previous yr exp. renounced - sect. 359.4 Development expenses that are included in the amount on line 107 of Form CO-400 and in the balance of the CCDE at the beginning of the taxation year and renounced by the corporation under section 359.4 of the Act, under the flow-through share plan, if the renunciation takes effect during the taxation year.
Current & previous yr exp. renounced - sect. 359.2.1 Development expenses that are included in the amount on line 107 of Form CO-400 and in the balance of the CCDE at the beginning of the taxation year and renounced by the corporation under section 359.2.1 of the Act, under the flow-through share plan, if the renunciation takes effect during the taxation year.
Expenses renounced under look-back rule Expenses renounced under look-back rule under subsection 66(12.66) of the Income Tax Act.
Expenses reclassified as Canadian exploration
Receivable - disp. of underground oil & gas prop. Receivable amounts on disposition of underground oil and gas rights or mining property.
Cr. balance - cumul. Can. oil & gas expense pool Credit balance in the cumulative Canadian oil and gas property expense pool.
Cr. balance - development expense pool Credit balance in the development expense pool.
Received - disp. of Can. oil & gas property Amounts received or receivable on disposition of Canadian oil and gas property.
Use [Alt-J] to enter different values for other jurisdictions.
ResProfits.r entered limits CEE, CDE, COGPE and the following deductions:
- Foreign Exploration & Development Expenses (FEDE): the deduction is limited to the amount of foreign resource income entered here. If the income is less than 10% of the FEDE pool, an additional deduction is allowed so that 10% is claimed.
- Earned Depletion Base (EDB): the deduction is limited to 25% of resource profits for earned depletion purposes entered here (see Fed Income Tax Reg. 1204 for the definition of resource profits);
- Mining Exploration Depletion Base (MEDB): the deduction is limited to 25% of income for tax purposes for the year before any EDB deduction. Use [Alt-J] to enter different values for other jurisdictions.
Use the keyword Resource-OV to override the amount of the resource claim calculated for the year. Use [Alt-J] to enter different values for other jurisdictions.
Use the keyword QC-Resource-OV to override the amount of the resource claim calculated for the year for either the basic amount or the amount for accelerated expenses.
The following options are applicable for the keyword QC-Resource-OV.
Use the keyword Resource-Tax-Cr if the corporation wishes to claim a Quebec resource tax credit.
The following options are applicable for the keyword Resource-Tax-Cr.
Use the keyword Partner-Info.r to indicate whether the partnership is an eligible partnership whereby the corporation is a member, an intermediary partnership whereby the corporation is a member, or an eligible partnership whereby the corporation is a member by an intermediary partnership.
The following options are applicable for the keyword Partner-Info.r.
Eligible partnership (corp is a member)
Intermediary partnership (corp is a member)
Elig. partnership (corp member by intermediary partnership)
Enter the name of the partnership using the keyword Partner-Name.r, for purposes of the CO-1029.8.36.EM form. The same name must also be entered in the keyword Name.re within the RelatedParty group in order to allow entry of other data pertaining to the partnership.
Use the keyword Resource-Type to indicate the type of eligible resource expense.
The following options are applicable for the keyword Resource-Type.
Exploration - no mineral resource (Near/Far North)
Exploration - no mineral resource (Elsewhere in Qc)
Exploration - no oil or gas well (Near/Far North)
Exploration - no oil or gas well (Elsewhere in Qc)
Exploration - mineral resource (Near/Far North)
Exploration - mineral resource (Elsewhere in Qc)
Exploration - oil or gas well (Near/Far North)
Exploration - oil or gas well (Elsewhere in Qc)
Exploration expenses - new natural resources
Renewable and conservation expenses
Use the keyword MineRes-Oper to indicate if the corporation operates a mineral resource or an oil or gas well.
The following options are applicable for the keyword MineRes-Oper.
If the corporation is a member of a partnership and has received a RL-15 slip for the year, enter on line 12, 12g, 19, 19g, 26 or 33 (whichever applies) of form CO-1029.8.36.EM the amount that is displayed in box 71 of that slip. Otherwise, complete Part 3 with the eligible partnership's data.
Use the keyword Expenses.r to enter the amount of eligible expenses incurred and paid.
Use the keyword Expenses.re to enter the amount of eligible expenses incurred and paid.
The following options are applicable for the keyword Expenses.re.
Oil/gas wells - exp. incurred before April 1, 2023
Mineral resources - exp. incurred before April 1, 2023 Mining exploration expenses incurred in Quebec, paid by the corporation and renounced by the corporation in respect of a share under the federal flow-through share plan. These expenses must have been incurred before April 1, 2023, if they are related to a mineral resource that is coal.
Other oil/gas wells - exp. incurred before Apr. 1, 2023
Other mineral res. - exp. incurred before April 1, 2023 Mining exploration expenses incurred in Quebec and paid by the corporation, other than those included on line 6 or 13, or mining exploration expenses incurred in Québec and paid by the partnership. These expenses must have been incurred before April 1, 2023, if they are related to a mineral resource that is coal.
Renewable energy/energy savings exp.
Other renewable energy/energy savings exp.
DT Max will deduct assistance, benefit or advantage received (entered as positive in Assistance.r) from or add assistance, benefit or advantage repaid (entered as negative in Assistance.r) to the qualified expenditures incurred by the corporation.
Use the keyword Renounce-Amt to enter the expenses renounced by the corporation in favour of an investor under the Quebec flow-through share system.
Use the keyword Res-Allowance to enter the notional resource allowance for the year as determined in subsection 7(3) of Ontario Regulation 37/09 under the Taxation Act, 2007(Ontario).
SaskResSales is used to calculate the Saskatchewan capital tax resource surcharge on resource sales made in the year.
You must include the value of the corporation's proportionate share of Saskatchewan resource sales of partnerships and joint ventures of which the corporation is a member in the total amounts entered here.
Small resource corporations (gross assets less than $100 million) are eligible for an annual resource sales deduction from Saskatchewan resource sales made in the year of up to $2.5 million. Enter the amount of gross assets in the Assets keyword in the TaxOnCapital group. Gross assets of associated corporations must be added to the corporation's assets for purposes of this test; enter the amount of each associated corporation's gross assets in the Prev-Yr-Assets keyword in each RelatedParty group which is entered for such corporations. The $2.5 million deduction is prorated for the number of days in the fiscal year. For multi-jurisdiction corporations, the deduction is also prorated for the proportion of total salaries and wages paid by this corporation and its associated corporation to this corporation's Saskatchewan employees. Enter the corporation's wages in the Alloc-Wages keyword in each Jurisdiction group and wages paid by associated corporations in Tot-Wages in each RelatedParty group which is entered for such corporations.
The surcharge is based on the difference between resource sales for the year after the resource sales deduction and capital tax payable.
The following options are applicable for the keyword SaskResSales.
Oil & gas, coal, potash & uranium Saskatchewan resource sales made after March 31, 1993, and before October 1, 2002.
Tier 4 oil & gas Saskatchewan resource sales made after September 30, 2002.
Use the keyword Amount.s to enter the value of resource sales in Saskatchewan at their corresponding rate.
The following options are applicable for the keyword Amount.s.
Resource sales at 3.0% The rate for oil and gas, coal, potash and uranium value of resource sales after June 30, 2008 is 3.0%.
Resource sales at 1.70% The rate for tier 4 oil and gas value of resource sales after June 30, 2008 is 1.70%
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Mining.r 
Resource-Type 
MineRes-Oper