Litigation on the interpretation of the resource allowance provision concluded only when the Supreme Court of Canada denied the government leave to appeal in July 1992. On July 23, 1992 draft regulations were released by the Department of Finance that clarified the issues dealt with in the litigation. These regulations were released in draft form in order to permit consultations with industry and with other government departments.
Once promulgated, these regulations will be effective from July 23, 1992, the date of their release. Further draft regulations
stopping abuse of the resource allowance through the use of partnerships were released on March 18, 1993. Consultations on both sets of draft regulations have been held with industry, Revenue Canada and the Department of Justice. Every effort will be made to have these draft regulations finalized and promulgated in the near future.
Question No. 20-