23. [Repealed, R.S., 1985, c. 51 (4th Supp.), s. 20]

Marginal note:Application of Income Tax Act provisions

24. Sections 173 and 174 of the Income Tax Act apply in respect of the tax imposed under this Part except that references therein to subsection 152(4) and sections 165 and 169 of that Act shall be read, respectively, as references to subsection 13(4) and sections 19 and 22 of this Act.

Marginal note:When proceedings held in camera

25. Proceedings under sections 22 and 23 shall be held in camera on request made to the Federal Court by the taxpayer.

Marginal note:Tax payable by non-resident persons

• 26. (1) A tax shall be payable by every non-resident person, in this section referred to as the "recipient", on every amount received by the recipient as, on account of or in lieu of payment of, or in satisfaction of a resource royalty, computed by reference to the amount or value of production of petroleum or gas after 1985 and before October 1986, unless the recipient, at the time of the receipt of the resource royalty, carries on a business described in subparagraph 66(15)(h)(i) of the Income Tax Act through one or more fixed places of business in Canada.

• Marginal note:Computation of tax

  (2) The tax payable by a person under this Part in respect of

  • (a) a resource royalty, other than a resource royalty on synthetic production, shall, where the royalty is computed by reference to the amount or value of production of petroleum or gas, be 13.33% of the amount of such royalty; and

  • (b) a resource royalty on synthetic production shall, where the royalty is computed by reference to the amount or value of production of petroleum or gas, be 12% of the amount of such royalty.

• (3) and (4) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 13]

• Marginal note:Deduction or withholding required

  (5) A person who pays a resource royalty on which a tax is payable under this Part shall, notwithstanding any agreement or law to the contrary, deduct or withhold therefrom the tax payable under this Part and the amount so deducted or withheld shall be deemed to have been paid on behalf of the recipient on account of the recipient’s tax.

• Marginal note:Amount to be remitted

  (6) A person who has deducted or withheld tax from a royalty as required by subsection (5) shall, on or before the fifteenth day of the month next following the month in which the royalty was paid, remit the amount deducted or withheld, accompanied by a return in prescribed form, to the Receiver General.

• (7) to (9) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 13]

• Marginal note:Where no tax is payable

  (10) Notwithstanding subsection (1), no tax shall be payable under this Part by a taxpayer on

  • (a) any portion of the amount received by the taxpayer as a production royalty or resource royalty, computed by reference to the amount or value of production in a period after March 31, 1985 from an approved recovery project, that is the exempt percentage of the amount for that period in respect of that project;

  • (b) any portion of the amount received by the taxpayer as a production royalty or resource royalty, computed by reference to the amount or value of production of petroleum or gas from a deepened well that is attributable to the new deep production from the well; or

  • (c) an amount received by the taxpayer as a production royalty or resource royalty computed by reference to the amount or value of production from a prescribed oil or gas well.