Alternative Methods of Industry Financing Founded on Recent Income Tax Innovations


  • J. C. Crawford



Energy Law, Petroleum Law


Current economic conditions are causing the oil and gas industry to examine novel techniques of project financing. The author discusses two such techniques made possible by recent changes in the tax laws. Hie first, based on 88. 66.1, 662 and 66.3 of the Income Tax Act, permits shareholder, in certain circumstances, to write off expenditures on Canadian Resource properties against his ordinary income. The second relates to the construction and operation of gas plants by a third party in return for long term commitment by gas owners to use or pay for the facilities.