Form T2 Schedule 12 "Resource-Related Deductions (2018 and Later Tax Years)" - Canada

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Download Form T2 Schedule 12 "Resource-Related Deductions (2018 and Later Tax Years)" - Canada

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Schedule 12
Code 1801
Resource-Related Deductions
Protected B
(2018 and later tax years)
when completed
Corporation's name
Business number
Tax year-end
Year
Month Day
• Use this schedule if you are a corporation claiming resource-related deductions.
• Complete the appropriate parts of this schedule and report any amounts you calculate on the corresponding lines of Schedule 1, Net Income (Loss) for
Income Tax Purposes:
line 340: Canadian development expenses from Part 5 of this schedule
line 341: Canadian exploration expenses from Part 4 of this schedule
line 342: Canadian oil and gas property expenses from Part 6 of this schedule
line 344: depletion from Part 3 of this schedule or
line 345: foreign exploration and development expenses from Part 7 of this schedule (line 345 includes specified foreign exploration and development
expenses from Part 8 of this schedule and foreign resource expenses from Part 9 of this schedule)
• All legislative references are to the federal Income Tax Act and Income Tax Regulations.
• The earned depletion base is defined in Regulation 1205(1), and the mining exploration depletion base is defined in Regulation 1203(2). You will find the
rules for claiming an earned depletion allowance in regulations 1201 and 1202(2) and a mining exploration depletion allowance in Regulation 1203(1).
• Expenses incurred by the corporation are referred to as "Regular expenses" and expenses incurred by the predecessor corporation that a successor
corporation is entitled to claim are referred to as "Successor expenses".
• Include a completed copy of this schedule with your T2 Corporation Income Tax Return. If you need more space, attach additional schedules.
Part 1 – Continuity of earned depletion base
Regular expenses
Successor expenses
Balance at end of previous tax year
101
126
105
130
Add: amount transferred on amalgamation or windup of subsidiary
(Note 1)
132
Add: amount transferred other than on amalgamation or windup of subsidiary
110
135
Deduct: amount transferred on sale of resource property to successor
Amount available
(Note 2)
A
B
140
Deduct: claim for the year under Regulation 1202(2)
115
Deduct: claim for the year under Regulation 1201
Closing balance
120
145
Note 1. The earned depletion base transferred on amalgamation or windup, to which subsections 87(1.2) and 88(1.5) apply, should be entered in the
"Regular expenses" column if the expenses were regular expenses in the hands of the amalgamating company or the subsidiary being wound up.
Note 2. If amount A is negative, enter "0" on lines 115 and 120. If amount B is negative, enter "0" on lines 140 and 145.
Part 2 – Continuity of mining exploration depletion base
150
Balance at end of previous tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add:
155
Amount transferred on amalgamation or windup of subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
160
Amount transferred other than on amalgamation or windup of subsidiary . . . . . . . . . . . . . . . . . . . .
Subtotal (line 155 plus line 160)
2A
Subtotal (line 150 plus amount 2A)
2B
165
Deduct: Amount transferred on sale of resource property to successor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2C
Amount available (amount 2B minus line 165)
(Note 3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
170
Deduct: claim for the year under Regulation 1203(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
175
Closing balance (amount 2C minus line 170) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 3. If amount 2C is negative, enter "0" on lines 170 and 175.
Part 3 – Depletion
3A
Claim for the year under Regulation 1201 (line 115 from Part 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3B
Claim for the year under Regulation 1202(2) (line 140 from Part 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3C
Claim for the year under Regulation 1203(1) (line 170 from Part 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3D
Depletion (add amounts 3A, 3B and 3C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter amount 3D on line 344 of Schedule 1.
T2 SCH 12 E (19)
(Ce formulaire est disponible en français)
Page 1 of 9
Clear Data
Schedule 12
Code 1801
Resource-Related Deductions
Protected B
(2018 and later tax years)
when completed
Corporation's name
Business number
Tax year-end
Year
Month Day
• Use this schedule if you are a corporation claiming resource-related deductions.
• Complete the appropriate parts of this schedule and report any amounts you calculate on the corresponding lines of Schedule 1, Net Income (Loss) for
Income Tax Purposes:
line 340: Canadian development expenses from Part 5 of this schedule
line 341: Canadian exploration expenses from Part 4 of this schedule
line 342: Canadian oil and gas property expenses from Part 6 of this schedule
line 344: depletion from Part 3 of this schedule or
line 345: foreign exploration and development expenses from Part 7 of this schedule (line 345 includes specified foreign exploration and development
expenses from Part 8 of this schedule and foreign resource expenses from Part 9 of this schedule)
• All legislative references are to the federal Income Tax Act and Income Tax Regulations.
• The earned depletion base is defined in Regulation 1205(1), and the mining exploration depletion base is defined in Regulation 1203(2). You will find the
rules for claiming an earned depletion allowance in regulations 1201 and 1202(2) and a mining exploration depletion allowance in Regulation 1203(1).
• Expenses incurred by the corporation are referred to as "Regular expenses" and expenses incurred by the predecessor corporation that a successor
corporation is entitled to claim are referred to as "Successor expenses".
• Include a completed copy of this schedule with your T2 Corporation Income Tax Return. If you need more space, attach additional schedules.
Part 1 – Continuity of earned depletion base
Regular expenses
Successor expenses
Balance at end of previous tax year
101
126
105
130
Add: amount transferred on amalgamation or windup of subsidiary
(Note 1)
132
Add: amount transferred other than on amalgamation or windup of subsidiary
110
135
Deduct: amount transferred on sale of resource property to successor
Amount available
(Note 2)
A
B
140
Deduct: claim for the year under Regulation 1202(2)
115
Deduct: claim for the year under Regulation 1201
Closing balance
120
145
Note 1. The earned depletion base transferred on amalgamation or windup, to which subsections 87(1.2) and 88(1.5) apply, should be entered in the
"Regular expenses" column if the expenses were regular expenses in the hands of the amalgamating company or the subsidiary being wound up.
Note 2. If amount A is negative, enter "0" on lines 115 and 120. If amount B is negative, enter "0" on lines 140 and 145.
Part 2 – Continuity of mining exploration depletion base
150
Balance at end of previous tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add:
155
Amount transferred on amalgamation or windup of subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
160
Amount transferred other than on amalgamation or windup of subsidiary . . . . . . . . . . . . . . . . . . . .
Subtotal (line 155 plus line 160)
2A
Subtotal (line 150 plus amount 2A)
2B
165
Deduct: Amount transferred on sale of resource property to successor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2C
Amount available (amount 2B minus line 165)
(Note 3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
170
Deduct: claim for the year under Regulation 1203(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
175
Closing balance (amount 2C minus line 170) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 3. If amount 2C is negative, enter "0" on lines 170 and 175.
Part 3 – Depletion
3A
Claim for the year under Regulation 1201 (line 115 from Part 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3B
Claim for the year under Regulation 1202(2) (line 140 from Part 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3C
Claim for the year under Regulation 1203(1) (line 170 from Part 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3D
Depletion (add amounts 3A, 3B and 3C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter amount 3D on line 344 of Schedule 1.
T2 SCH 12 E (19)
(Ce formulaire est disponible en français)
Page 1 of 9
Clear Data
Protected B when completed
Part 4 – Cumulative Canadian exploration expenses
Regular expenses
Successor expenses
200
250
Balance at end of previous tax year
Add: current-year expenses, excluding expenses incurred under look-back rule
205
206
Add: current-year expenses under look-back rule [subsection 66(12.66)]
210
255
Add: reclassified Canadian development expenses under subsections 66.1(9) and 66.7(9)
215
260
Add: amount transferred on amalgamation or windup of subsidiary
(Note 4)
Add: amount transferred other than on amalgamation or windup of subsidiary
265
217
Add: Canadian renewable and conservation expenses
220
Add: other additions
Deduct: government assistance and grants
225
230
280
Deduct: other deductions or transfers
240
290
Deduct: amount transferred on disposition of resource property to successor
243
Deduct: current and previous-year Canadian exploration expenses renounced in the year
under a flow-through share agreement
Deduct: expenses renounced under look-back rule [subsection 66(12.66)]
244
Amount available
(Note 5)
C
D
245
295
Deduct: current-year claim under subsections 66.1(2) or 66.1(3) and 66.7(3)
(Note 6)
Closing balance
249
299
4A
Claim for the year under subsections 66.1(2) or 66.1(3) (from line 245) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4B
Claim for the year under subsection 66.7(3) (from line 295) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4C
Canadian exploration expenses (amount 4A plus amount 4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter amount 4C on line 341 of Schedule 1.
Note 4. Canadian exploration expenses transferred on amalgamation or wind-up, to which subsections 87(1.2) and 88(1.5) apply, should be entered in
the "Regular expenses" column if the expenses were regular expenses in the hands of the amalgamating company or the subsidiary being wound
up.
Note 5. If amount C is negative, include it as income in the "Other additions" area on page 3 of Schedule 1 and enter "0" at lines 245 and 249.
If amount D is negative, include it as income in the "Other additions" area on page 3 of Schedule 1 and enter "0" at lines 295 and 299.
Note 6. The maximum deduction is amount C plus the lesser of:
– amount D, and
– the amount determined under paragraph 66.7(3)(b), which, in most cases, will be the income attributable to the disposition of successored
properties and the production income from successored properties.
Page 2 of 9
Clear Data
Protected B when completed
Part 5 – Cumulative Canadian development expenses
Regular expenses
Successor expenses
300
350
Balance at end of previous tax year
303
Add: current-year expenses, excluding expenses incurred under look-back rule
Add: current-year expenses under look-back rule [subsection 66(12.66)]
304
Add: amount transferred on amalgamation or windup of subsidiary
(Note 7)
305
355
357
Add: amount transferred other than on amalgamation or windup of subsidiary
310
Add: other additions
Deduct: reclassified Canadian development expenses under subsections 66.1(9) and 66.7(9)
315
365
320
Deduct: government assistance and grants
325
Deduct: receivable on disposition of underground oil and gas storage rights or mining property
Deduct: credit balance in the cumulative Canadian oil and gas property expense pool
330
380
Deduct: other deductions or transfers
335
385
340
390
Deduct: amount transferred on disposition of resource property to successor
343
Deduct: current and previous-year Canadian development expenses renounced in the year
under a flow-through share agreement
Deduct: expenses renounced under look-back rule [subsection 66(12.66)]
344
Amount available
(Note 8)
E
F
Accelerated Canadian development expenses (ACDE) incurred during the tax year (included in
346
current-year expenses)
(Note 9)
Total current-year additions (total of lines 303, 304 and 310)
347
Additions other than ACDE (line 347 minus line 346)
G
370
Total current-year deductions (total of lines 315, 320, 325, 330, 335, 343 and 344)
Total current-year deductions less additions other than ACDE (line 370 minus amount G, if
H
negative enter "0")
Adjusted ACDE (line 346 minus amount H, if negative enter "0")
I
Deduct: current-year claim under subsections 66.2(2) and 66.7(4)
(Note 10)
345
395
Closing balance
349
399
5A
Claim for the year under subsection 66.2(2) (from line 345) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5B
Claim for the year under subsection 66.7(4) (from line 395) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5C
Canadian development expenses (amount 5A plus amount 5B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter amount 5C on line 340 of Schedule 1.
Note 7. Canadian development expenses transferred on amalgamation or windup, to which subsections 87(1.2) and 88(1.5) apply, should be entered
in the "Regular expenses" column if the expenses were regular expenses in the hands of the amalgamating company or the subsidiary being
wound up.
Note 8.
– When there is no designation under subparagraph 66.7(4)(a)(iii) and amount F is negative, enter it on line 335 and enter "0" on
lines 395 and 399.
When a designation under subparagraph 66.7(4)(a)(iii) has been made and amount F is negative, enter it on line 440 in Part 6, and enter
"0" on lines 395 and 399. If this results in amount J of Part 6 being negative, enter that amount on line 330.
– If amount E is negative, include it as income in the "Other additions" area on page 3 of Schedule 1 and enter "0" on lines 345 and 349.
Note 9. An accelerated Canadian development expense is generally a Canadian development expense incurred by the taxpayer after November 20, 2018,
and before 2028, subject to certain exceptions. See the T2 Corporation Income Tax Guide for more information.
Note 10. The maximum deduction is 30% of amount E plus 15% of amount I plus the lesser of:
– 30% of amount F, and
– the amount determined under paragraph 66.7(4)(b).
For a tax year of less than 51 weeks, 30% is prorated based on the number of days in the tax year divided by 365.
For a tax year of less than 51 weeks that ends after July 30, 2019, 30% and 15% are prorated based on the number of days in the tax year divided
by 365.
Page 3 of 9
Clear Data
Protected B when completed
Part 6 – Cumulative Canadian oil and gas property expenses
Regular expenses
Successor expenses
Balance at end of previous tax year
400
450
405
Add: current-year expenses
Add: amount transferred on amalgamation or windup of subsidiary
(Note 11)
410
455
Add: amount transferred other than on amalgamation or windup of subsidiary
460
Add: other additions
415
420
470
Deduct: receivable on disposition of Canadian oil and gas property
425
Deduct: government assistance and grants
Deduct: amount transferred on disposition of resource property to successor
435
485
440
490
Deduct: other deductions or transfers
Amount available
(Note 12)
J
K
Accelerated Canadian oil and gas property expenses (ACOGPE) incurred during the tax year
446
(included in current-year expenses)
(Note 13)
447
Total current-year additions (total of lines 405 and 415)
Additions other than ACOGPE (line 447 minus line 446)
L
Total current-year deductions (total of lines 420, 425 and 440)
451
Total current-year deductions less additions other than ACOGPE (line 451 minus amount L, if
M
negative enter "0")
Adjusted ACOGPE (line 446 minus amount M, if negative enter "0")
N
Deduct: current-year claim under subsections 66.4(2) and 66.7(5)
(Note 14)
445
495
Closing balance
449
499
6A
Claim for the year under subsection 66.4(2) (from line 445) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6B
Claim for the year under subsection 66.7(5) (from line 495) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6C
Canadian oil and gas property expenses (amount 6A plus amount 6B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter amount 6C on line 342 of Schedule 1.
Note 11. Canadian oil and gas property expenses transferred on amalgamation or windup, to which subsections 87(1.2) and 88(1.5) apply, should be
entered in the "Regular expenses" column if the expenses were regular expenses in the hands of the amalgamating company or the subsidiary
being wound up.
Note 12. (a) When there is no designation under subparagraph 66.7(4)(a)(iii) and amount K is negative, enter it on line 440 and enter "0" on
lines 495 and 499. If this results in amount J becoming negative, enter that amount on line 335 in Part 5, "Cumulative Canadian development
expenses," and enter "0" on lines 445 and 449.
When a designation under subparagraph 66.7(4)(a)(iii) has been made and amount K is negative, enter it on line 380 in Part 5, "Cumulative
Canadian development expenses," and enter "0" on lines 495 and 499. If amount F in Part 5 becomes negative, enter that amount on
line 440. If this results in amount J in Part 6 becoming negative, enter that amount on line 330 in Part 5.
(b) When amount J is negative due to other than (a) above, enter the amount on line 330 in Part 5 and enter "0" on lines 445 and 449.
Note 13. An accelerated Canadian oil and gas property expense is generally a Canadian oil and gas property expense incurred by the taxpayer after
November 20, 2018, and before 2028, subject to certain exceptions. See the T2 Corporation Income Tax Guide for more information.
Note 14. The maximum deduction is 10% of amount J plus 5% of amount N plus the lesser of:
– 10% of amount K, and
– the amount determined under paragraph 66.7(5)(b).
For a tax year of less than 51 weeks, 10% is prorated based on the number of days in the tax year divided by 365.
For a tax year of less than 51 weeks that ends after July 30, 2019, 10% and 5% are prorated based on the number of days in the tax year divided by
365.
Page 4 of 9
Clear Data
Protected B when completed
Part 7 – Foreign exploration and development expenses
Foreign exploration and development expenses are those incurred outside Canada in a tax year beginning before 2001. If the expenses are specified foreign
exploration and development expenses, complete Part 8.
Regular expenses
Successor expenses
500
550
Balance at end of previous tax year
Add: amount transferred on amalgamation or windup of subsidiary
(Note 15)
510
555
Add: amount transferred other than on amalgamation or windup of subsidiary
560
515
565
Deduct: other deductions or transfers
Amount available
(Note 16)
O
P
Deduct: current-year claim under subsections 66(4) and 66.7(2)
(Note 17)
520
570
525
575
Closing balance
Note 15. Foreign exploration and development expenses transferred on amalgamation or windup, to which subsections 87(1.2) and 88(1.5) apply,
should be entered in the "Regular expenses" column if the expenses were regular expenses in the hands of the amalgamating company or the
subsidiary being wound up.
Note 16. If amount O is negative, include it as income in the "Other additions" area on page 3 of Schedule 1 and enter "0" on lines 520 and 525.
If amount P is negative, include it as income in the "Other additions" area on page 3 of Schedule 1 and enter "0" on lines 570 and 575.
Note 17. The maximum deduction for regular expenses is the lesser of:
– amount O, and
– the greater of foreign-source resource income and 10% of amount O.
For a fiscal period of less than 51 weeks, 10% is prorated based on the number of days in the tax year divided by 365.
The maximum deduction for successor expenses is the lesser of:
– amount P, and
– foreign-source resource income attributable to successored properties.
Foreign-source resource income includes income from oil and gas wells or mines outside Canada and proceeds, less applicable
expenses and reserves on the disposition of foreign resource property.
Regular expenses
Successor expenses
530
580
Foreign-source resource income
7A
Claim for the year under subsection 66(4) for foreign exploration and development expenses (from line 520) . . . . . . . . . . . . . . . . . .
7B
Claim for the year under subsection 66.7(2) for foreign exploration and development expenses (from line 570) . . . . . . . . . . . . . . . . .
7C
Claim for the year under subsection 66(4) for specified foreign exploration and development expenses (amount Q from Part 8) . . . .
7D
Claim for the year under subsection 66.7(2) for specified foreign exploration and development expenses (amount R from Part 8) . .
7E
Claim for the year under subsection 66.21(4) (amount S from Part 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7F
Claim for the year under subsection 66.7(2.3) (amount T from Part 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7G
Foreign exploration and development expenses and cumulative foreign resources expenses (total of amounts 7A to 7F) . . . .
Enter amount 7G on line 345 of Schedule 1.
Page 5 of 9
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