Section 66.5 — Income Tax Act: Deduction from income

In computing its income for a taxation year that ends before 1995, a corporation that has not made a designation for the year under subsection 66(14.1) or (14.2) may deduct such amount as it may claim not exceeding its cumulative offset account at the end of the year. In this section, cumulative offset account of a corporation at any time means the amount, if any, by which the total of all amounts required to be added under subsections 66(14.1) and (14.2) in computing its cumulative offset account before that time, exceeds the total of all amounts deducted under subsection 66.5(1) in computing its income for taxation years ending before that time. Where at any time after June 5, 1987 control of a corporation has been acquired by a person or group of persons, the amount deductible under subsection 66.5(1) by the corporation in computing its income for a taxation year ending after that time shall not exceed the amount, if any, by which the part of its income for the year that may reasonably be regarded as attributable to production from Canadian resource properties owned by it immediately before that time exceeds the total of all amounts deducted under subsection 29(25) of the Income Tax Application Rules and subsections 66.7(1), (3), (4) and (5) by it in respect of its income for the year in computing its income for the year.