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Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (S.C. 1988, c. 28)

Act current to 2024-02-20 and last amended on 2020-02-26. Previous Versions

PART IVRevenue Sharing (continued)

Regulations

Marginal note:Regulations

 The Governor in Council may, on the recommendation of the Minister of Finance, make regulations

  • (a) excluding, for the purposes of this Act, any provision or any part of a provision of the following that is inconsistent with this Act, the Accord or any bilateral or international treaty, convention or agreement respecting taxation, tariffs or trade to which the Government of Canada is a signatory:

    • (i) the Offshore Petroleum Royalty Act or any regulation made under it,

    • (ii) the Consumption Tax Acts or any regulation referred to in subsection 212(3.1),

    • (iii) the Insurance Premiums Tax Act or any regulation referred to in subsection 213(3.1), or

    • (iv) the Nova Scotia Income Tax Act or any regulation referred to in subsection 216(3.1); and

  • (b) prescribing anything that is by this Part to be prescribed.

  • 1988, c. 28, s. 221
  • 2014, c. 13, s. 90

Appropriation

Marginal note:Appropriation

 In respect of any fiscal year, the Federal Minister may pay out of the Consolidated Revenue Fund, at such times and in such manner as may be prescribed,

  • (a) an amount to Her Majesty in right of the Province on account of amounts that have been refunded or reimbursed during that fiscal year by the Government of the Province to taxpayers in respect of taxes paid under this Part; and

  • (b) amounts payable during that fiscal year to Her Majesty in right of the Province pursuant to paragraph 219(2)(b).

PART V[Repealed, 2015, c. 4, s. 104]

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PART VI[Repealed, 2015, c. 4, s. 104]

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PART VIIDrilling Fund

Interpretation

Marginal note:Definitions

 In this Part,

Canadian development expense

Canadian development expense has the meaning assigned by paragraph 66.2(5)(a) of the Income Tax Act, except that

  • (a) there shall be excluded from that meaning any Canadian exploration and development overhead expense, and

  • (b) all that portion of that paragraph following clause (vii)(C) thereof shall be read as follows:

“but any amount of assistance or benefit that a taxpayer has received, is entitled to receive or can reasonably be expected to receive after May 25, 1976 from a government, municipality or other public authority in respect of or related to his Canadian development expense, whether as a grant, subsidy, forgivable loan, deduction from royalty or tax, investment allowance or any other form of assistance or benefit, other than an investment tax credit in respect of a qualified Canadian exploration expenditure, shall reduce the amount of any of the expenses described in any of subparagraphs (i) to (v); and”; (frais d’aménagement au Canada)

Canadian exploration and development overhead expense

Canadian exploration and development overhead expense has the meaning assigned by subsection 1206(1) of the Income Tax Regulations; (frais généraux d’exploration et d’aménagement au Canada)

Canadian exploration expense

Canadian exploration expense has the meaning assigned by paragraph 66.1(6)(a) of the Income Tax Act, except that

  • (a) there shall be excluded from that meaning any Canadian exploration and development overhead expense and any expense referred to in subparagraph (i) thereof,

  • (b) any reference in that paragraph to any expense incurred in drilling or completing an oil or gas well in Canada shall be read as including, with such modifications as the circumstances require, a reference to

    • (i) any expense incurred in respect of an exploratory probe in the offshore area, and

    • (ii) any expense incurred in respect of a well in relation to a three dimensional seismic survey, an engineering study or an analytical study for the purpose of determining the location or extent of an accumulation of petroleum in the offshore area, and

  • (c) all that portion of that paragraph following clause (vii)(C) thereof shall be read as follows:

“but any amount of assistance or benefit that a taxpayer has received, is entitled to receive or can reasonably be expected to receive after May 25, 1976 from a government, municipality or other public authority in respect of or related to a Canadian exploration expense, whether as a grant, subsidy, forgivable loan, deduction from royalty or tax, investment allowance or any other form of assistance or benefit, other than an investment tax credit in respect of a qualified Canadian exploration expenditure, shall reduce the amount of any of the expenses described in any of subparagraphs (i) to (v); and”; (frais d’exploration au Canada)

investment tax credit

investment tax credit has the meaning assigned by subsection 127(9) of the Income Tax Act; (crédit d’impôt à l’investissement)

Nova Scotia Resources (Ventures) Limited

Nova Scotia Resources (Ventures) Limited means the company incorporated on November 20, 1981 under the Companies Act, Chapter 42 of the Revised Statutes of Nova Scotia, 1967; (Société)

qualified Canadian exploration expenditure

qualified Canadian exploration expenditure has the meaning assigned by subsection 127(9) of the Income Tax Act. (dépense admissible d’exploration au Canada)

Drilling Assistance

Marginal note:Assistance to Nova Scotia Resources (Ventures) Limited

  •  (1) Subject to subsection (2), the Federal Minister may, on application, make payments to Nova Scotia Resources (Ventures) Limited in respect of Canadian exploration expenses and Canadian development expenses incurred by Nova Scotia Resources (Ventures) Limited that could contribute to early development of petroleum in the offshore area.

  • Marginal note:Limitation

    (2) Payments made by the Federal Minister pursuant to subsection (1) shall not exceed fifty per cent of the aggregate of the Canadian exploration expenses and Canadian development expenses incurred in respect of wells

    • (a) subject to paragraph (b), the drilling of which began during the period commencing on August 27, 1986 and ending on December 31, 1991, or

    • (b) in the case of expenses referred to in subparagraph (b)(ii) of the definition Canadian exploration expense in section 239, during the period referred to in paragraph (a),

    to the extent that those expenses are reasonable in the circumstances.

Marginal note:Transitional assistance

 The Federal Minister may, on application, make payments to Nova Scotia Resources (Ventures) Limited equal, in the aggregate, to the amount of interest incurred by Nova Scotia Resources (Ventures) Limited on money borrowed in order to finance activities in relation to the exploration or development of oil or gas in the offshore area to the extent that

  • (a) the cost of the interest is reasonable in the circumstances;

  • (b) the interest was incurred during the period commencing on August 27, 1986 and ending on the date on which this Part comes into force; and

  • (c) the interest is in respect of borrowed money that, in the aggregate, is equal to or less than the aggregate of all amounts payable by the Federal Minister pursuant to section 240 in respect of expenses incurred during the period referred to in paragraph (b).

Appropriation

Marginal note:Appropriation

 There may be paid out of the Consolidated Revenue Fund, for the purpose of making payments pursuant to sections 240 and 241, amounts not exceeding, in the aggregate, the sum of twenty-five million dollars.

 

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