Department of Finance restricts the resource allowance
CIM Bulletin, Vol. 85, No. 964, 1992
Robert B. Parsons, Partner, Price Waterhouse*, Toronto
The Department of Finance introduced draft amendments to the resource allowance regulations on July 23, 1992 that effectively nullify the decision in the Gulf Canada Limited case. Prior to the amendments it appeared that only "directly" related general and administrative, capital cost allowance and scientific research expenditures had to be deducted from resource profits. Now ancillary expenditures are required to be deducted. Consequently, the ability of taxpayers to claim the resource allowance is curtailed.
