Canadian Development Expenses definition

Canadian Development Expenses or “CDE” means “Canadian development expenses” as defined in subsection 66.2(5) of the Tax Act.

Canadian Development Expenses or “CDE” means Canadian development expenses described in paragraph (a) or (b) of the definition of “Canadian development expense” in subsection 66.2(5) of the Tax Act or would be described in paragraph (f) of such definition if the words “any of paragraphs (a) to (e)” in that paragraph were read as “paragraphs (a) and (b)”, excluding amounts which are prescribed to constitute “Canadian exploration and development overhead expense” under the Tax Act and the amount of any assistance described in paragraphs 66(12.62)(a) and 66(12.601)(c) of the Tax Act;

Canadian Development Expenses or “CDE” means an expense as described in the definition of “Canadian development expense” in subsection 66.2(5) of the Tax Act, other than amounts which are: (i) assistance described in paragraph 66(12.62)(a) of the Tax Act; (ii) prescribed to be Canadian exploration and development overhead expenses for purposes of paragraph 66(12.62)(b) of the Tax Act; (iii) specified expenses that are described in paragraph (e) of the definition of “Canadian development expense” in subsection 66.2(5) of the Tax Act or that are described in paragraph (f) of that definition because of the reference in the latter paragraph to paragraph (e); or (iv) any expenses for prepaid services or rent that do not qualify as outlays and expenses for the period as described in the definition of “expense” in subsection 66(15) of the Tax Act.

Examples of Canadian Development Expenses in a sentence

• Discretionary tax deductions, including Canadian Development Expenses, Canadian Oil and Gas Property Expense and Capital Cost Allowance, were maximized in the respective tax years in order to reduce Birchcliff’s accounting profits into a loss position for tax purposes.

• The Company renounced the Canadian Development Expenses such that the full proceeds were deductible against the subscribers’ income in 2017.

• On March 7, 2018, the Company was advised by the CRA that out of the total of $12.5 million the Company raised through the flow-through share financings and renounced to subscribers, that the CRA had reclassified approximately $1.8 million of CEE to operating expenses and a further $2.2 million of CEE to Canadian Development Expenses (“CDE”).

• Pursuant to the provisions of the Income Tax Act (Canada) and the terms of the offering, the Company committed to renounce to the subscribers Canadian Development Expenses incurred by the Company of $7.5 million by each of January 31, 2017 and March 31, 2017.

• In addition, the Company has accumulated Canadian Exploration Expenses and Canadian Development Expenses for income tax purposes of approximately $75,000.

• These resource companies incur Canadian Exploration Expenses, Canadian Development Expenses and/or Qualifying Canadian Development Expenses in carrying out mining and oil and natural gas exploration and development activities and renewable energy development activities.

• For that 2016 flow-through financing, an amount of $434,600 was raised and the Company committed to renounce the same amount to the investors through Canadian Exploration Expenses (“CEE”) to be incurred before the end of 2017.On March 1, 2019, the CRA concluded its audit and issued a letter to the Company proposing a reclassification of $366,730 as Canadian Development Expenses (“CDE”), which cannot be renounced to investors, leaving only the remaining $67,870 as CEE.

• If exploration leads to development then the less preferential Canadian Development Expenses (CDE) rate of 30% could be applied, at least until this CDE is brought more in line with capital cost allowance rates that reflect the useful life of the asset.

• These losses, if unused, will expire in the following years:Non capital loss expiration: 2009$ 635,0992010553,7382011381,2512014513,7172014820,70620251,577,0742026 2,542,538 $ 7,024,123 In addition, the Company has approximately $2,707,038 of Canadian Exploration Expenses, Canadian Development Expenses, Foreign Exploration and Development Expenses and Foreign Resource Expenses that could be used to reduce taxable income for Canadian income tax purposes and have no expiration.

• The proceeds will be used by Paramount to incur eligible Canadian Development Expenses.