Petroleum and Gas Revenue Tax Regulations (SOR/82-503)

5.1 For the purposes of paragraph 5(2)(e) of the Act, there may be deducted in computing the income of a taxpayer for a taxation year

• (a) 25 per cent of the amount of his production revenue for the year that may reasonably be attributed to a period in the year that is after December 31, 1981,

• (b) 20.45 per cent of the amount of his production revenue for the year that may reasonably be attributed to a period in the year that is after December 31, 1982 and before June 1, 1983 and that is derived from the production of petroleum by the taxpayer from a mine in a bituminous sands deposit, and

• (c) 25 per cent of the amount of the taxpayer’s production revenue for the year that may reasonably be attributed to a period in the year that is after May 31, 1983, and that is derived from the production of petroleum by the taxpayer from a mine in a bituminous sands deposit,

which production revenue is computed in accordance with the Act on the assumption that, for the year,

• (d) the taxpayer was not allowed any deduction under paragraph 82(2)(e) or subsection 82(3.2) of the Act, as those provisions read before December 12, 1988;

• (e) the taxpayer has not deducted any amount with respect to the payment of a resource royalty;

• (f) the taxpayer has not included any amount in the taxpayer’s production revenue by virtue of subsection 82(5) of the Act, as that subsection read before December 12, 1988; and

• (g) paragraph 82(1)(b.1) of the Act, as that paragraph read before December 12, 1988, is read without reference to “or resource royalty”.