I-0.4 - Mining Tax Act

Section 4.9 Disposition versions

2011-06-06

4.9. Despite sections 4.7 and 4.8, for the purposes of this Act in respect of a functional currency year (in this section referred to as the “particular fiscal year”) of an operator, the following rules apply:

(1)  for the purpose of computing the payments that the operator is required to make in relation to the particular fiscal year under paragraph 1 of section 46,

(a)  each estimated amount described in subparagraph a of that paragraph 1 that is payable by the operator for the particular fiscal year is to be determined by converting that amount, as determined in the operator’s elected functional currency, to Canadian currency using the relevant spot rate for the day on or before which the amount is required to be paid,

(b)  the operator’s first basic provisional account referred to in subparagraph a of that paragraph 1 for the particular fiscal year is to be determined, if the particular fiscal year is the operator’s first functional currency year, without reference to this chapter and, in any other case, as if the duties payable by the operator for the operator’s functional currency year (in this subparagraph referred to as the “first base year”) preceding the particular fiscal year were equal to the total of

i.  the aggregate of the payments that the operator is required to make under that paragraph 1, determined in accordance with this subparagraph b or with subparagraph a or c, as the case may be, in respect of the first base year, and

ii.  the remainder of the duties payable by the operator under paragraph 2 of section 46, determined in accordance with paragraph 2, in respect of the first base year;

(c)  the operator’s second basic provisional account described in subparagraph b of paragraph 1 of section 46 for the particular fiscal year is to be determined, if the particular fiscal year is the operator’s first functional currency year or the operator’s fiscal year that follows the operator’s first functional currency year, without reference to this chapter and, in any other case, as if the duties payable by the operator for the operator’s functional currency year (in this subparagraph referred to as the “second base year”) preceding the first base year were equal to the total of

i.  the aggregate of the payments that the operator is required to make under that paragraph 1, determined in accordance with this subparagraph c or with subparagraph a or b, as the case may be, in respect of the second base year, and

ii.  the remainder of the duties payable by the operator under paragraph 2 of section 46, determined in accordance with paragraph 2, in respect of the second base year, and

(d)  those payments must correspond to the payments based on the method described in paragraph 1 of section 46 that is referred to in section 52 in respect of the operator in relation to the particular fiscal year;

(2)  the remainder of the duties payable by the operator for the particular fiscal year under paragraph 2 of section 46 is equal to the amount obtained by converting to Canadian currency, using the relevant spot rate for the day that is the last day of the period ending two months after the end of the particular fiscal year, the amount by which the duties payable by the operator under this Act for the particular fiscal year, expressed in the operator’s elected functional currency, exceeds the aggregate of all amounts each of which is the amount obtained by converting the amount of a payment that the operator is required to make in relation to this Act in respect of the particular fiscal year, determined in accordance with paragraph 1 of section 46, with reference to subparagraph a, b or c, as the case may be, of paragraph 1, to the operator’s elected functional currency using the relevant spot rate for the day on or before which the payment is required to be made;

(3)  for the purpose of computing an amount payable in respect of the duties that are payable by the operator for the particular fiscal year under this Act, other than the duties themselves, those duties are deemed to be equal to the total of

(a)  the aggregate of the payments that the operator is required to make under paragraph 1 of section 46, determined in accordance with subparagraph a, b or c, as the case may be, of paragraph 1, in respect of the particular fiscal year, and

(b)  the remainder of the duties payable by the operator under paragraph 2 of section 46, determined in accordance with paragraph 2, in respect of the particular fiscal year;

(4)  in relation to an amount that the operator may claim as a refundable duties credit for losses under section 32 for the particular fiscal year, the amount, determined in the operator’s elected functional currency, is to be converted to Canadian currency using the relevant spot rate for the day that is the last day of the period ending two months after the end of the particular fiscal year; and

(5)  any amount payable by the operator for the particular fiscal year under this Act is to be paid in Canadian currency.

2011, c. 6, s. 18.