I-0.4 - Mining Tax Act

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21. Subject to section 25, the amount that an operator may deduct as a processing allowance in computing its annual earnings from a mine for a fiscal year that begins after 30 March 2010 but before 1 January 2014, under subparagraph d of subparagraph 2 of the fourth paragraph of section 8, must not exceed the lesser of
(1)  the aggregate of the amounts determined by the formula in respect of each property of the operator (in this section referred to as the “particular property”) that is a processing asset used in processing ore from the mine in the fiscal year and that is in the operator’s possession at the end of the fiscal year;
A × B; and
(2)  an amount that is 55% of the annual earnings from the mine, for the fiscal year, determined without reference to subparagraphs d, e, g and h of subparagraph 2 of the fourth paragraph of section 8.
In the formula in subparagraph 1 of the first paragraph,
(1)  A is the proportion that the use of the particular property in processing ore from the mine is of the total use of the particular property for the purpose of processing ore from the mine and for any other purpose in the fiscal year; and
(2)  B is an amount equal to,
(a)  if the operator does not engage in smelting or refining, 7% of the capital cost to the operator of the particular property, or
(b)  if the operator engages in smelting or refining,
i.  7% of the capital cost of the particular property where the property is used solely in processing ore from a gold or silver mine, or
ii.  the amount by which 13% of the capital cost of the particular property, where the property is used in processing ore other than ore from a gold or silver mine, exceeds 6% of the proportion of the capital cost of the particular property, where it is used for concentration purposes, that the quantity of ore concentrated by the operator, which is not smelted or refined by the operator and the processing of which required the use of the particular property, is of the total quantity of ore the processing of which required the use of the particular property.
The amount that an operator may deduct as a processing allowance in computing its annual profit for a fiscal year that begins before 31 March 2010 under subparagraph h of paragraph 2 of section 8, as it read on 30 March 2010, is equal to the amount determined under this section, as it read on 30 March 2010. However, where this section applies for the purpose of determining the operator’s annual profit for a fiscal year that ends after 30 March 2010 and includes that date, the amount that the operator may deduct, as a processing allowance, is equal to the amount determined under this section, as it read on 30 March 2010, as if
(1)  the 8% rate specified in subparagraph i of subparagraph a of paragraph 1 and in subparagraph 1 of subparagraph ii of subparagraph a of paragraph 1 was replaced by the total of
(a)  8% multiplied by the proportion that the number of days in the fiscal year that precede 31 March 2010 is of the number of days in the fiscal year, and
(b)  7% multiplied by the proportion that the number of days in the fiscal year that follow 30 March 2010 is of the number of days in the fiscal year;
(2)  the 15% rate specified in subparagraph 2 of subparagraph ii of subparagraph a of paragraph 1 was replaced by the total of
(a)  15% multiplied by the proportion that the number of days in the fiscal year that precede 31 March 2010 is of the number of days in the fiscal year, and
(b)  13% multiplied by the proportion that the number of days in the fiscal year that follow 30 March 2010 is of the number of days in the fiscal year;
(3)  the 7% rate specified in subparagraph 2 of subparagraph ii of subparagraph a of paragraph 1 was replaced by the total of
(a)  7% multiplied by the proportion that the number of days in the fiscal year that precede 31 March 2010 is of the number of days in the fiscal year, and
(b)  6% multiplied by the proportion that the number of days in the fiscal year that follow 30 March 2010 is of the number of days in the fiscal year;
(4)  the 15% rate specified in subparagraph b of paragraph 1 was replaced by a rate equal to the rate obtained by multiplying 15% by the proportion that the number of days in the fiscal year that precede 31 March 2010 is of the number of days in the fiscal year; and
(5)  the 65% rate specified in paragraph 2 was replaced by the total of
(a)  65% multiplied by the proportion that the number of days in the fiscal year that precede 31 March 2010 is of the number of days in the fiscal year, and
(b)  55% multiplied by the proportion that the number of days in the fiscal year that follow 30 March 2010 is of the number of days in the fiscal year.
1975, c. 30, s. 21; 1994, c. 47, s. 22; 1996, c. 4, s. 7; 1997, c. 85, s. 24; 1999, c. 83, s. 13; 2011, c. 6, s. 50; 2015, c. 21, s. 67.
21. Subject to section 25, the amount that an operator may deduct as a processing allowance in computing its annual earnings from a mine for a fiscal year that begins after 30 March 2010, under subparagraph d of subparagraph 2 of the fourth paragraph of section 8, must not exceed the lesser of
(1)  the aggregate of the amounts determined by the formula
A × B
in respect of each property of the operator (in this section referred to as the particular property ) that is a processing asset used in processing ore from the mine in the fiscal year and that is in the operator’s possession at the end of the fiscal year; and
(2)  an amount that is 55% of the annual earnings from the mine, for the fiscal year, determined without reference to subparagraphs d, e, g and h of subparagraph 2 of the fourth paragraph of section 8.
In the formula in subparagraph 1 of the first paragraph,
(1)  A is the proportion that the use of the particular property in processing ore from the mine is of the total use of the particular property for the purpose of processing ore from the mine and for any other purpose in the fiscal year; and
(2)  B is an amount equal to,
(a)  if the operator does not engage in smelting or refining, 7% of the capital cost to the operator of the particular property, or
(b)  if the operator engages in smelting or refining,
i.  7% of the capital cost of the particular property where the property is used solely in processing ore from a gold or silver mine, or
ii.  the amount by which 13% of the capital cost of the particular property, where the property is used in processing ore other than ore from a gold or silver mine, exceeds 6% of the proportion of the capital cost of the particular property, where it is used for concentration purposes, that the quantity of ore concentrated by the operator, which is not smelted or refined by the operator and the processing of which required the use of the particular property, is of the total quantity of ore the processing of which required the use of the particular property.
The amount that an operator may deduct as a processing allowance in computing its annual profit for a fiscal year that begins before 31 March 2010 under subparagraph h of paragraph 2 of section 8, as it read on 30 March 2010, is equal to the amount determined under this section, as it read on 30 March 2010. However, where this section applies for the purpose of determining the operator’s annual profit for a fiscal year that ends after 30 March 2010 and includes that date, the amount that the operator may deduct, as a processing allowance, is equal to the amount determined under this section, as it read on 30 March 2010, as if
(1)  the 8% rate specified in subparagraph i of subparagraph a of paragraph 1 and in subparagraph 1 of subparagraph ii of subparagraph a of paragraph 1 was replaced by the total of
(a)  8% multiplied by the proportion that the number of days in the fiscal year that precede 31 March 2010 is of the number of days in the fiscal year, and
(b)  7% multiplied by the proportion that the number of days in the fiscal year that follow 30 March 2010 is of the number of days in the fiscal year;
(2)  the 15% rate specified in subparagraph 2 of subparagraph ii of subparagraph a of paragraph 1 was replaced by the total of
(a)  15% multiplied by the proportion that the number of days in the fiscal year that precede 31 March 2010 is of the number of days in the fiscal year, and
(b)  13% multiplied by the proportion that the number of days in the fiscal year that follow 30 March 2010 is of the number of days in the fiscal year;
(3)  the 7% rate specified in subparagraph 2 of subparagraph ii of subparagraph a of paragraph 1 was replaced by the total of
(a)  7% multiplied by the proportion that the number of days in the fiscal year that precede 31 March 2010 is of the number of days in the fiscal year, and
(b)  6% multiplied by the proportion that the number of days in the fiscal year that follow 30 March 2010 is of the number of days in the fiscal year;
(4)  the 15% rate specified in subparagraph b of paragraph 1 was replaced by a rate equal to the rate obtained by multiplying 15% by the proportion that the number of days in the fiscal year that precede 31 March 2010 is of the number of days in the fiscal year; and
(5)  the 65% rate specified in paragraph 2 was replaced by the total of
(a)  65% multiplied by the proportion that the number of days in the fiscal year that precede 31 March 2010 is of the number of days in the fiscal year, and
(b)  55% multiplied by the proportion that the number of days in the fiscal year that follow 30 March 2010 is of the number of days in the fiscal year.
1975, c. 30, s. 21; 1994, c. 47, s. 22; 1996, c. 4, s. 7; 1997, c. 85, s. 24; 1999, c. 83, s. 13; 2011, c. 6, s. 50.
21. Subject to sections 23, 23.1 and 25, the amount that an operator may deduct as a processing allowance in computing his annual profit for a fiscal year under subparagraph h of paragraph 2 of section 8 shall not exceed the lesser of
(1)  the aggregate of
(a)  an amount equal,
i.  if the operator does not engage in smelting or refining, to 8% of the capital cost to the operator of each property that is a processing asset during the fiscal year and that is in the operator’s possession at the end of that fiscal year, and
ii.  if the operator engages in smelting or refining, to the aggregate of
(1)   8% of the capital cost of each property referred to in subparagraph i, where the property is used solely in processing ore from a gold or silver mine, and
(2)  the amount by which 15% of the capital cost of each property referred to in subparagraph i, where the property is used in processing ore other than ore from a gold or silver mine, exceeds 7% of the proportion of the capital cost of the property, where it is used for the purposes of concentration, that the quantity of ore concentrated by the operator, which is not smelted or refined by the operator and the processing of which required the use of the property, is of the total quantity of ore the processing of which required the use of the property; and
(b)  subject to section 21.1, 15% of the aggregate of all amounts each of which is the capital cost of property that is in the possession of the operator at the end of the operator’s fiscal year, that is a processing asset, purchased new by the operator after 31 March 1998 and used by the operator in Québec during the fiscal year exclusively for the purpose of processing mine tailings; and
(2)  an amount that is 65% of the annual profit, for that fiscal year, determined before the deduction as a processing allowance, additional depreciation allowance and additional allowance for a northern mine referred to in subparagraphs h, h.1 and j of paragraph 2 of section 8.
1975, c. 30, s. 21; 1994, c. 47, s. 22; 1996, c. 4, s. 7; 1997, c. 85, s. 24; 1999, c. 83, s. 13.
21. Subject to sections 23, 23.1 and 25, the amount that an operator may deduct as a processing allowance in computing his annual profit for a fiscal year under subparagraph h of paragraph 2 of section 8 shall not exceed the lesser of
(1)  an amount equal,
(a)  if the operator does not engage in smelting or refining, to 8 % of the capital cost to the operator of each property that is a processing asset during the fiscal year and that is in his possession at the end of that fiscal year;
(b)  if the operator engages in smelting or refining, to the total of
i.  8 % of the capital cost of each property referred to in subparagraph a, where the property is used solely in processing ore from a gold or silver mine; and
ii.  the amount by which 15 % of the capital cost of each property referred to in subparagraph a, where the property is used in processing ore other than ore from a gold or silver mine, exceeds 7 % of the proportion of the capital cost of the property, where it is used for the purposes of concentration, that the quantity of ore concentrated by the operator, which is not smelted or refined by the operator and the processing of which required the use of the property, is of the total quantity of ore the processing of which required the use of the property; and
(2)  an amount that is 65 % of the annual profit, for that fiscal year, determined before the deduction as a processing allowance, additional depreciation allowance and additional allowance for a northern mine referred to in subparagraphs h, h.1 and j of paragraph 2 of section 8.
1975, c. 30, s. 21; 1994, c. 47, s. 22; 1996, c. 4, s. 7; 1997, c. 85, s. 24.
21. Subject to sections 23, 23.1 and 25, the amount that an operator may deduct as a processing allowance in computing his annual profit for a fiscal year under subparagraph h of paragraph 2 of section 8 shall not exceed the lesser of
(1)  an amount equal,
(a)  if the operator does not engage in smelting or refining, to 8 % of the capital cost to the operator of each property that is a processing asset during the fiscal year and that is in his possession at the end of that fiscal year;
(b)  if the operator engages in smelting or refining, to the total of
i.  8 % of the capital cost of each property referred to in subparagraph a, where the property is used solely in processing ore from a gold or silver mine; and
ii.  the amount by which 15 % of the capital cost of each property referred to in subparagraph a, where the property is used in processing ore other than ore from a gold or silver mine, exceeds 7 % of the proportion of the capital cost of the property, where it is used for the purposes of concentration, that the quantity of ore concentrated by the operator, which is not smelted or refined by the operator and the processing of which required the use of the property, is of the total quantity of ore the processing of which required the use of the property; and
(2)  an amount that is 65 % of the annual profit, for that fiscal year, determined before deduction of the processing allowance and the additional allowance for a northern mine referred to in subparagraphs h and j of paragraph 2 of section 8.
1975, c. 30, s. 21; 1994, c. 47, s. 22; 1996, c. 4, s. 7.
21. Subject to sections 23, 23.1 and 25, the amount that an operator may deduct as a processing allowance in computing his annual profit for a fiscal year under subparagraph h of paragraph 2 of section 8 shall not exceed the lesser of
(1)  an amount equal,
(a)  if the operator does not engage in smelting or refining, to 8 % of the capital cost to the operator of each property that is a processing asset during the fiscal year and that is in his possession at the end of that fiscal year;
(b)  if the operator engages in smelting or refining, to the total of
i.  8 % of the capital cost of each property referred to in subparagraph a, where the property is used solely in processing ore from a gold or silver mine; and
ii.  the amount by which 15 % of the capital cost of each property referred to in subparagraph a, where the property is used in processing ore other than ore from a gold or silver mine, exceeds 7 % of the proportion of the capital cost of the property, where it is used for the purposes of concentration, that the quantity of ore concentrated by the operator, which is not smelted or refined by the operator and the processing of which required the use of the property, is of the total quantity of ore the processing of which required the use of the property; and
(2)  an amount that is 65 % of the annual profit, for that fiscal year, determined before deduction of the processing allowance referred to in subparagraph h of paragraph 2 of section 8.
1975, c. 30, s. 21; 1994, c. 47, s. 22.
21. The operator of a mine may deduct as an allowance for treatment, for each fiscal year, an amount equal to:
(a)  if the operator does no smelting or refining, 8 per cent of the cost to him of each allowable depreciable property owned by him at the end of the fiscal year and used by him in Québec, during that year, in the processing or treatment of the mineral substances extracted from the mine, excluding however the cost of property used for the transportation of those substances outside the lands of the mine;
(b)  if the operator does smelting or refining, 15 per cent of the cost of each allowable depreciable property mentioned in paragraph a; however, the property used to process or treat ore from gold and silver mines is not eligible for the 15 per cent allowance.
1975, c. 30, s. 21.