I-0.4 - Mining Tax Act

Full text
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year that begins after 30 March 2010 is equal to the amount determined by the formula
A - B.
In the formula in the first paragraph,
(1)  A is the aggregate of
(a)  the total of all amounts each of which is the annual earnings, as determined according to the rules set out in the third and fourth paragraphs, of the operator for that fiscal year in respect of each mine it operates in that fiscal year, and
(b)  an amount, other than government assistance, received or receivable by the operator in the fiscal year from a person or partnership, because of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of subparagraph 1 of the second paragraph of section 16.1 or subparagraph a of subparagraph 1 of the second paragraph of any of sections 16.9, 16.11, 16.13.2, 16.13.4 and 16.13.6; and
(2)  B is the aggregate of
(a)  the total of all amounts each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development, within the meaning of section 1 of the Taxation Act (chapter I-3) carried out in Canada, to the extent that the expense may be considered to relate to the operator’s mining operation,
(b)  the total of all amounts each of which is the eligible amount of a gift, within the meaning of section 7.21 of the Taxation Act, made by the operator in the fiscal year, if
i.  the gift would be referred to in section 710 or 752.0.10.1 of that Act, as the case may be, if paragraph a of section 999.2 of that Act were read as if “i to v” were replaced by “i to iii” and if section 999.2 of that Act were read without its paragraphs i and j, and
ii.  the total of those amounts does not exceed 10% of the total referred to in subparagraph a of subparagraph 1,
(c)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation and mine development allowance in respect of expenses incurred before 31 March 2010,
(d)  subject to sections 16.7 and 16.8, the amount deducted by the operator, for the fiscal year, as an exploration allowance in respect of expenses incurred after 30 March 2010,
(e)  the total of all amounts each of which is a general administrative expense incurred by the operator in the fiscal year, in relation to exploration work,
(f)  subject to section 16.10, the amount deducted by the operator, for the fiscal year, as a pre-production development allowance in respect of expenses incurred after 30 March 2010,
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance in respect of expenses incurred before 31 March 2010,
(h)  subject to section 16.13.1, the amount deducted by the operator, for the fiscal year, as an allowance for community consultations, and
(i)  subject to section 16.13.3, the amount deducted by the operator, for the fiscal year, as an allowance for environmental studies;
(j)  subject to section 16.13.5, the amount deducted by the operator, for the fiscal year, as a sustainable development certification allowance.
For the purposes of subparagraph a of subparagraph 1 of the second paragraph, the annual earnings of the operator for a fiscal year in respect of each mine it operates in that fiscal year is equal to the amount determined by the formula
C - D.
In the formula in the third paragraph,
(1)  C is the aggregate of
(a)  the portion of the gross value of the operator’s annual output for the fiscal year that is reasonably attributable to the operation of the mine,
(b)  if, for the purpose of determining the gross value of the operator’s annual output for the fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the amount that would be the portion of the gross value of annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine if that value had been determined according to the method used by the operator to determine the gross value of annual output for the fiscal year, exceeds the amount that is the portion of the gross value of annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine,
(c)  if particular gemstones from the mine have not been mixed with other gemstones, if the operator alienates those particular gemstones in the fiscal year in favour of a person to whom the operator is not related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act, at the time of the alienation and if the value of the particular gemstones was taken into consideration in determining the gross value of the operator’s annual output for a preceding fiscal year, the amount, if any, by which the amount received or receivable as consideration for that alienation exceeds the value taken into consideration,
(d)  an amount, other than government assistance, received or receivable by the operator in the fiscal year, from a person or partnership, because of an expense incurred by the operator in respect of the mine for a particular fiscal year that is an expense deducted in computing the operator’s annual earnings in respect of the mine for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph a of subparagraph 1 of the second paragraph of section 16.13,
(e)  the amount determined in accordance with any of sections 10.2, 10.3, 10.12 and 10.13 for the fiscal year that is reasonably attributable to the operation of the mine,
(f)  the lesser of the operator’s cumulative contributions account at the end of the fiscal year relating to the mine and the aggregate of all amounts each of which is an amount that relates to the reclamation of land that is or was used for the operation of the mine, and that is included, under paragraph z or z.1 of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary,
(g)  any amount included, under paragraph w of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that the operator is deemed to have paid to the Minister under sections 1029.8.36.168, 1029.8.36.170, 1029.8.36.171.1, 1029.8.36.171.2 and 1029.8.36.173 of that Act and that is reasonably attributable to the operation of the mine,
(h)  if the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of sections 87.3 and 87.3.1 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a partner of the operator is deemed to have paid to the Minister under section 1029.8.36.169 or 1029.8.36.171 of that Act and that is reasonably attributable to the operation of the mine, and
(i)  if the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of section 87.3 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a partner of the operator is deemed to have paid to the Minister under sections 1029.8.36.174 and 1029.8.36.175 of that Act and that is reasonably attributable to the operation of the mine; and
(2)  D is the aggregate of
(a)  the total of all expenses each of which is an expense, other than an expense referred to in subparagraph e of subparagraph 2 of the second paragraph, incurred by the operator in respect of the mine, for the fiscal year, to the extent that the expense was incurred to realize the portion of the gross value of the operator’s annual output that is reasonably attributable to the operation of the mine and provided that the expense relates directly thereto,
(b)  subject to sections 10, 10.1.1 and 10.17, the amount deducted by the operator, for the fiscal year, as a depreciation allowance that is reasonably attributable to the operation of the mine,
(c)  the amount that the operator is required to deduct, for the fiscal year, in respect of the mine as a post-production development allowance in accordance with the first paragraph of section 16.12,
(d)  subject to sections 20.1 and 21, the amount deducted by the operator, for the fiscal year, in respect of the mine as a processing allowance,
(e)  subject to section 26.0.1, the amount deducted by the operator, for the fiscal year, as an additional depreciation allowance that is reasonably attributable to the operation of the mine,
(f)  the amount determined in accordance with any of sections 10.4, 10.5, 10.15 and 10.16, for the fiscal year, that is reasonably attributable to the operation of the mine,
(g)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine that is reasonably attributable to the operation of the mine,
(h)  subject to section 26.4, the amount deducted by the operator, for the fiscal year, in respect of the mine as an additional allowance for a mine situated in Northern Québec,
(i)  the aggregate of all amounts each of which is an amount paid by the operator for the reclamation of land that is or was used for the operation of the mine, and deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary,
(j)  if, for the purpose of determining the gross value of the operator’s annual output for a fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the amount that is the portion of the gross value of the operator’s annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine exceeds the amount that would be the portion of the gross value of the operator’s annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine if that value had been determined using the method used by the operator to determine the gross value of the annual output for the fiscal year, and
(k)  if particular gemstones from the mine have not been mixed with other gemstones, if the operator alienates those particular gemstones in the fiscal year in favour of a person to whom the operator is not related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act, at the time of the alienation and if the value of those particular gemstones was taken into consideration in determining the gross value of the operator’s annual output for a preceding fiscal year, the amount, if any, by which the value thus taken into consideration exceeds the amount received or receivable as consideration for that alienation.
For the purpose of computing the annual profit of an eligible operator for a fiscal year that begins after 30 March 2010, the following rules apply:
(1)  the operator is deemed, for that fiscal year, to operate only one mine;
(2)  subparagraph a of subparagraph 1 of the second paragraph is to be read as follows:
“(a) the amount, positive or negative, determined for the fiscal year in respect of the operator according to the rules set out in the third and fourth paragraphs;”;
(3)  subparagraph b of subparagraph 2 of the second paragraph is to be read as if of the total was replaced by of the positive amount, if any, ; and
(4)  the portion of the third paragraph before the formula is to be read as follows:
For the purposes of subparagraph a of subparagraph 1 of the second paragraph, the amount, positive or negative, determined for the fiscal year in respect of the operator that is the annual earnings from the mine that the operator is deemed to operate in that fiscal year, is equal to the amount determined by the formula .
The annual profit of an operator for a fiscal year that begins before 31 March 2010 is equal to the amount determined under this section, as it read before that date. However, for the purpose of determining the annual profit of an operator for a fiscal year that ends after 30 March 2010 and that includes that date, this section, as it read on 30 March 2010, is to be read
(1)  as if for the purposes of subparagraph b of subparagraph 1 of section 16.1 in subparagraph b of paragraph 1 was replaced by for the purposes of subparagraph b of subparagraph 1 of the second paragraph of section 16.1 and subparagraph a of subparagraph 1 of the second paragraph of any of sections 16.9, 16.11 and 16.13 ;
(2)  as if 8.6 and 10 in subparagraph d of paragraph 2 was replaced by 8.6, 10 and 10.1.1 ; and
(3)  as if the following subparagraphs were inserted after subparagraph e of paragraph 2:
“(e.1) subject to sections 16.7 and 16.8, the amount deducted by the operator, for the fiscal year, as an exploration allowance in respect of expenses incurred after 30 March 2010;
“(e.2) subject to section 16.10, the amount deducted by the operator, for the fiscal year, as a pre-production development allowance in respect of expenses incurred after 30 March 2010;
“(e.3) the amount that the operator is required to deduct, for the fiscal year, as a post-production development allowance in respect of expenses incurred after 30 March 2010 in accordance with the first paragraph of section 16.12.”.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3; 1997, c. 85, s. 19; 1999, c. 83, s. 5; 2000, c. 5, s. 2; 2001, c. 51, s. 5; 2004, c. 21, s. 30; 2011, c. 6, s. 21; 2015, c. 8, s. 44; 2015, c. 21, s. 46; 2019, c. 142019, c. 14, s. 44; 2020, c. 162020, c. 16, s. 14.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year that begins after 30 March 2010 is equal to the amount determined by the formula
A - B.
In the formula in the first paragraph,
(1)  A is the aggregate of
(a)  the total of all amounts each of which is the annual earnings, as determined according to the rules set out in the third and fourth paragraphs, of the operator for that fiscal year in respect of each mine it operates in that fiscal year, and
(b)  an amount, other than government assistance, received or receivable by the operator in the fiscal year from a person or partnership, because of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of subparagraph 1 of the second paragraph of section 16.1 or subparagraph a of subparagraph 1 of the second paragraph of any of sections 16.9, 16.11, 16.13.2 and 16.13.4; and
(2)  B is the aggregate of
(a)  the total of all amounts each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development, within the meaning of section 1 of the Taxation Act (chapter I-3) carried out in Canada, to the extent that the expense may be considered to relate to the operator’s mining operation,
(b)  the total of all amounts each of which is the eligible amount of a gift, within the meaning of section 7.21 of the Taxation Act, made by the operator in the fiscal year, if
i.  the gift would be referred to in section 710 or 752.0.10.1 of that Act, as the case may be, if paragraph a of section 999.2 of that Act were read as if “i to v” were replaced by “i to iii” and if section 999.2 of that Act were read without its paragraphs i and j, and
ii.  the total of those amounts does not exceed 10% of the total referred to in subparagraph a of subparagraph 1,
(c)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation and mine development allowance in respect of expenses incurred before 31 March 2010,
(d)  subject to sections 16.7 and 16.8, the amount deducted by the operator, for the fiscal year, as an exploration allowance in respect of expenses incurred after 30 March 2010,
(e)  the total of all amounts each of which is a general administrative expense incurred by the operator in the fiscal year, in relation to exploration work,
(f)  subject to section 16.10, the amount deducted by the operator, for the fiscal year, as a pre-production development allowance in respect of expenses incurred after 30 March 2010,
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance in respect of expenses incurred before 31 March 2010,
(h)  subject to section 16.13.1, the amount deducted by the operator, for the fiscal year, as an allowance for community consultations, and
(i)  subject to section 16.13.3, the amount deducted by the operator, for the fiscal year, as an allowance for environmental studies.
For the purposes of subparagraph a of subparagraph 1 of the second paragraph, the annual earnings of the operator for a fiscal year in respect of each mine it operates in that fiscal year is equal to the amount determined by the formula
C - D.
In the formula in the third paragraph,
(1)  C is the aggregate of
(a)  the portion of the gross value of the operator’s annual output for the fiscal year that is reasonably attributable to the operation of the mine,
(b)  if, for the purpose of determining the gross value of the operator’s annual output for the fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the amount that would be the portion of the gross value of annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine if that value had been determined according to the method used by the operator to determine the gross value of annual output for the fiscal year, exceeds the amount that is the portion of the gross value of annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine,
(c)  if particular gemstones from the mine have not been mixed with other gemstones, if the operator alienates those particular gemstones in the fiscal year in favour of a person to whom the operator is not related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act, at the time of the alienation and if the value of the particular gemstones was taken into consideration in determining the gross value of the operator’s annual output for a preceding fiscal year, the amount, if any, by which the amount received or receivable as consideration for that alienation exceeds the value taken into consideration,
(d)  an amount, other than government assistance, received or receivable by the operator in the fiscal year, from a person or partnership, because of an expense incurred by the operator in respect of the mine for a particular fiscal year that is an expense deducted in computing the operator’s annual earnings in respect of the mine for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph a of subparagraph 1 of the second paragraph of section 16.13,
(e)  the amount determined in accordance with any of sections 10.2, 10.3, 10.12 and 10.13 for the fiscal year that is reasonably attributable to the operation of the mine,
(f)  the lesser of the operator’s cumulative contributions account at the end of the fiscal year relating to the mine and the aggregate of all amounts each of which is an amount that relates to the reclamation of land that is or was used for the operation of the mine, and that is included, under paragraph z or z.1 of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary,
(g)  any amount included, under paragraph w of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that the operator is deemed to have paid to the Minister under sections 1029.8.36.168, 1029.8.36.170, 1029.8.36.171.1, 1029.8.36.171.2 and 1029.8.36.173 of that Act and that is reasonably attributable to the operation of the mine,
(h)  if the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of sections 87.3 and 87.3.1 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a partner of the operator is deemed to have paid to the Minister under section 1029.8.36.169 or 1029.8.36.171 of that Act and that is reasonably attributable to the operation of the mine, and
(i)  if the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of section 87.3 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a partner of the operator is deemed to have paid to the Minister under sections 1029.8.36.174 and 1029.8.36.175 of that Act and that is reasonably attributable to the operation of the mine; and
(2)  D is the aggregate of
(a)  the total of all expenses each of which is an expense, other than an expense referred to in subparagraph e of subparagraph 2 of the second paragraph, incurred by the operator in respect of the mine, for the fiscal year, to the extent that the expense was incurred to realize the portion of the gross value of the operator’s annual output that is reasonably attributable to the operation of the mine and provided that the expense relates directly thereto,
(b)  subject to sections 10, 10.1.1 and 10.17, the amount deducted by the operator, for the fiscal year, as a depreciation allowance that is reasonably attributable to the operation of the mine,
(c)  the amount that the operator is required to deduct, for the fiscal year, in respect of the mine as a post-production development allowance in accordance with the first paragraph of section 16.12,
(d)  subject to sections 20.1 and 21, the amount deducted by the operator, for the fiscal year, in respect of the mine as a processing allowance,
(e)  subject to section 26.0.1, the amount deducted by the operator, for the fiscal year, as an additional depreciation allowance that is reasonably attributable to the operation of the mine,
(f)  the amount determined in accordance with any of sections 10.4, 10.5, 10.15 and 10.16, for the fiscal year, that is reasonably attributable to the operation of the mine,
(g)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine that is reasonably attributable to the operation of the mine,
(h)  subject to section 26.4, the amount deducted by the operator, for the fiscal year, in respect of the mine as an additional allowance for a mine situated in Northern Québec,
(i)  the aggregate of all amounts each of which is an amount paid by the operator for the reclamation of land that is or was used for the operation of the mine, and deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary,
(j)  if, for the purpose of determining the gross value of the operator’s annual output for a fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the amount that is the portion of the gross value of the operator’s annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine exceeds the amount that would be the portion of the gross value of the operator’s annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine if that value had been determined using the method used by the operator to determine the gross value of the annual output for the fiscal year, and
(k)  if particular gemstones from the mine have not been mixed with other gemstones, if the operator alienates those particular gemstones in the fiscal year in favour of a person to whom the operator is not related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act, at the time of the alienation and if the value of those particular gemstones was taken into consideration in determining the gross value of the operator’s annual output for a preceding fiscal year, the amount, if any, by which the value thus taken into consideration exceeds the amount received or receivable as consideration for that alienation.
For the purpose of computing the annual profit of an eligible operator for a fiscal year that begins after 30 March 2010, the following rules apply:
(1)  the operator is deemed, for that fiscal year, to operate only one mine;
(2)  subparagraph a of subparagraph 1 of the second paragraph is to be read as follows:
“(a) the amount, positive or negative, determined for the fiscal year in respect of the operator according to the rules set out in the third and fourth paragraphs;”;
(3)  subparagraph b of subparagraph 2 of the second paragraph is to be read as if of the total was replaced by of the positive amount, if any, ; and
(4)  the portion of the third paragraph before the formula is to be read as follows:
For the purposes of subparagraph a of subparagraph 1 of the second paragraph, the amount, positive or negative, determined for the fiscal year in respect of the operator that is the annual earnings from the mine that the operator is deemed to operate in that fiscal year, is equal to the amount determined by the formula .
The annual profit of an operator for a fiscal year that begins before 31 March 2010 is equal to the amount determined under this section, as it read before that date. However, for the purpose of determining the annual profit of an operator for a fiscal year that ends after 30 March 2010 and that includes that date, this section, as it read on 30 March 2010, is to be read
(1)  as if for the purposes of subparagraph b of subparagraph 1 of section 16.1 in subparagraph b of paragraph 1 was replaced by for the purposes of subparagraph b of subparagraph 1 of the second paragraph of section 16.1 and subparagraph a of subparagraph 1 of the second paragraph of any of sections 16.9, 16.11 and 16.13 ;
(2)  as if 8.6 and 10 in subparagraph d of paragraph 2 was replaced by 8.6, 10 and 10.1.1 ; and
(3)  as if the following subparagraphs were inserted after subparagraph e of paragraph 2:
“(e.1) subject to sections 16.7 and 16.8, the amount deducted by the operator, for the fiscal year, as an exploration allowance in respect of expenses incurred after 30 March 2010;
“(e.2) subject to section 16.10, the amount deducted by the operator, for the fiscal year, as a pre-production development allowance in respect of expenses incurred after 30 March 2010;
“(e.3) the amount that the operator is required to deduct, for the fiscal year, as a post-production development allowance in respect of expenses incurred after 30 March 2010 in accordance with the first paragraph of section 16.12.”.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3; 1997, c. 85, s. 19; 1999, c. 83, s. 5; 2000, c. 5, s. 2; 2001, c. 51, s. 5; 2004, c. 21, s. 30; 2011, c. 6, s. 21; 2015, c. 8, s. 44; 2015, c. 21, s. 46; 2019, c. 142019, c. 14, s. 44.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year that begins after 30 March 2010 is equal to the amount determined by the formula
A - B.
In the formula in the first paragraph,
(1)  A is the aggregate of
(a)  the total of all amounts each of which is the annual earnings, as determined according to the rules set out in the third and fourth paragraphs, of the operator for that fiscal year in respect of each mine it operates in that fiscal year, and
(b)  an amount, other than government assistance, received or receivable by the operator in the fiscal year from a person or partnership, because of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of subparagraph 1 of the second paragraph of section 16.1 or subparagraph a of subparagraph 1 of the second paragraph of section 16.9 or 16.11; and
(2)  B is the aggregate of
(a)  the total of all amounts each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development, within the meaning of section 1 of the Taxation Act (chapter I-3) carried out in Canada, to the extent that the expense may be considered to relate to the operator’s mining operation,
(b)  the total of all amounts each of which is the eligible amount of a gift, within the meaning of section 7.21 of the Taxation Act, made by the operator in the fiscal year, if
i.  the gift would be referred to in section 710 or 752.0.10.1 of that Act, as the case may be, if paragraph a of section 999.2 of that Act were read as if “i to v” were replaced by “i to iii” and if section 999.2 of that Act were read without its paragraphs i and j, and
ii.  the total of those amounts does not exceed 10% of the total referred to in subparagraph a of subparagraph 1,
(c)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation and mine development allowance in respect of expenses incurred before 31 March 2010,
(d)  subject to sections 16.7 and 16.8, the amount deducted by the operator, for the fiscal year, as an exploration allowance in respect of expenses incurred after 30 March 2010,
(e)  the total of all amounts each of which is a general administrative expense incurred by the operator in the fiscal year, in relation to exploration work,
(f)  subject to section 16.10, the amount deducted by the operator, for the fiscal year, as a pre-production development allowance in respect of expenses incurred after 30 March 2010, and
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance in respect of expenses incurred before 31 March 2010.
For the purposes of subparagraph a of subparagraph 1 of the second paragraph, the annual earnings of the operator for a fiscal year in respect of each mine it operates in that fiscal year is equal to the amount determined by the formula
C - D.
In the formula in the third paragraph,
(1)  C is the aggregate of
(a)  the portion of the gross value of the operator’s annual output for the fiscal year that is reasonably attributable to the operation of the mine,
(b)  if, for the purpose of determining the gross value of the operator’s annual output for the fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the amount that would be the portion of the gross value of annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine if that value had been determined according to the method used by the operator to determine the gross value of annual output for the fiscal year, exceeds the amount that is the portion of the gross value of annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine,
(c)  if particular gemstones from the mine have not been mixed with other gemstones, if the operator alienates those particular gemstones in the fiscal year in favour of a person to whom the operator is not related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act, at the time of the alienation and if the value of the particular gemstones was taken into consideration in determining the gross value of the operator’s annual output for a preceding fiscal year, the amount, if any, by which the amount received or receivable as consideration for that alienation exceeds the value taken into consideration,
(d)  an amount, other than government assistance, received or receivable by the operator in the fiscal year, from a person or partnership, because of an expense incurred by the operator in respect of the mine for a particular fiscal year that is an expense deducted in computing the operator’s annual earnings in respect of the mine for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph a of subparagraph 1 of the second paragraph of section 16.13,
(e)  the amount determined in accordance with any of sections 10.2, 10.3, 10.12 and 10.13 for the fiscal year that is reasonably attributable to the operation of the mine,
(f)  the lesser of the operator’s cumulative contributions account at the end of the fiscal year relating to the mine and the aggregate of all amounts each of which is an amount that relates to the reclamation of land that is or was used for the operation of the mine, and that is included, under paragraph z or z.1 of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary,
(g)  any amount included, under paragraph w of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that the operator is deemed to have paid to the Minister under sections 1029.8.36.168, 1029.8.36.170, 1029.8.36.171.1, 1029.8.36.171.2 and 1029.8.36.173 of that Act and that is reasonably attributable to the operation of the mine,
(h)  if the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of sections 87.3 and 87.3.1 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a partner of the operator is deemed to have paid to the Minister under section 1029.8.36.169 or 1029.8.36.171 of that Act and that is reasonably attributable to the operation of the mine, and
(i)  if the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of section 87.3 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a partner of the operator is deemed to have paid to the Minister under sections 1029.8.36.174 and 1029.8.36.175 of that Act and that is reasonably attributable to the operation of the mine; and
(2)  D is the aggregate of
(a)  the total of all expenses each of which is an expense, other than an expense referred to in subparagraph e of subparagraph 2 of the second paragraph, incurred by the operator in respect of the mine, for the fiscal year, to the extent that the expense was incurred to realize the portion of the gross value of the operator’s annual output that is reasonably attributable to the operation of the mine and provided that the expense relates directly thereto,
(b)  subject to sections 10, 10.1.1 and 10.17, the amount deducted by the operator, for the fiscal year, as a depreciation allowance that is reasonably attributable to the operation of the mine,
(c)  the amount that the operator is required to deduct, for the fiscal year, in respect of the mine as a post-production development allowance in accordance with the first paragraph of section 16.12,
(d)  subject to sections 20.1 and 21, the amount deducted by the operator, for the fiscal year, in respect of the mine as a processing allowance,
(e)  subject to section 26.0.1, the amount deducted by the operator, for the fiscal year, as an additional depreciation allowance that is reasonably attributable to the operation of the mine,
(f)  the amount determined in accordance with any of sections 10.4, 10.5, 10.15 and 10.16, for the fiscal year, that is reasonably attributable to the operation of the mine,
(g)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine that is reasonably attributable to the operation of the mine,
(h)  subject to section 26.4, the amount deducted by the operator, for the fiscal year, in respect of the mine as an additional allowance for a mine situated in Northern Québec,
(i)  the aggregate of all amounts each of which is an amount paid by the operator for the reclamation of land that is or was used for the operation of the mine, and deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary,
(j)  if, for the purpose of determining the gross value of the operator’s annual output for a fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the amount that is the portion of the gross value of the operator’s annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine exceeds the amount that would be the portion of the gross value of the operator’s annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine if that value had been determined using the method used by the operator to determine the gross value of the annual output for the fiscal year, and
(k)  if particular gemstones from the mine have not been mixed with other gemstones, if the operator alienates those particular gemstones in the fiscal year in favour of a person to whom the operator is not related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act, at the time of the alienation and if the value of those particular gemstones was taken into consideration in determining the gross value of the operator’s annual output for a preceding fiscal year, the amount, if any, by which the value thus taken into consideration exceeds the amount received or receivable as consideration for that alienation.
For the purpose of computing the annual profit of an eligible operator for a fiscal year that begins after 30 March 2010, the following rules apply:
(1)  the operator is deemed, for that fiscal year, to operate only one mine;
(2)  subparagraph a of subparagraph 1 of the second paragraph is to be read as follows:
“(a) the amount, positive or negative, determined for the fiscal year in respect of the operator according to the rules set out in the third and fourth paragraphs;”;
(3)  subparagraph b of subparagraph 2 of the second paragraph is to be read as if of the total was replaced by of the positive amount, if any, ; and
(4)  the portion of the third paragraph before the formula is to be read as follows:
For the purposes of subparagraph a of subparagraph 1 of the second paragraph, the amount, positive or negative, determined for the fiscal year in respect of the operator that is the annual earnings from the mine that the operator is deemed to operate in that fiscal year, is equal to the amount determined by the formula .
The annual profit of an operator for a fiscal year that begins before 31 March 2010 is equal to the amount determined under this section, as it read before that date. However, for the purpose of determining the annual profit of an operator for a fiscal year that ends after 30 March 2010 and that includes that date, this section, as it read on 30 March 2010, is to be read
(1)  as if for the purposes of subparagraph b of subparagraph 1 of section 16.1 in subparagraph b of paragraph 1 was replaced by for the purposes of subparagraph b of subparagraph 1 of the second paragraph of section 16.1 and subparagraph a of subparagraph 1 of the second paragraph of any of sections 16.9, 16.11 and 16.13 ;
(2)  as if 8.6 and 10 in subparagraph d of paragraph 2 was replaced by 8.6, 10 and 10.1.1 ; and
(3)  as if the following subparagraphs were inserted after subparagraph e of paragraph 2:
“(e.1) subject to sections 16.7 and 16.8, the amount deducted by the operator, for the fiscal year, as an exploration allowance in respect of expenses incurred after 30 March 2010;
“(e.2) subject to section 16.10, the amount deducted by the operator, for the fiscal year, as a pre-production development allowance in respect of expenses incurred after 30 March 2010;
“(e.3) the amount that the operator is required to deduct, for the fiscal year, as a post-production development allowance in respect of expenses incurred after 30 March 2010 in accordance with the first paragraph of section 16.12.”.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3; 1997, c. 85, s. 19; 1999, c. 83, s. 5; 2000, c. 5, s. 2; 2001, c. 51, s. 5; 2004, c. 21, s. 30; 2011, c. 6, s. 21; 2015, c. 8, s. 44; 2015, c. 21, s. 46.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year that begins after 30 March 2010 is equal to the amount determined by the formula
A - B.
In the formula in the first paragraph,
(1)  A is the aggregate of
(a)  the total of all amounts each of which is the annual earnings, as determined according to the rules set out in the third and fourth paragraphs, of the operator for that fiscal year in respect of each mine it operates in that fiscal year, and
(b)  an amount, other than government assistance, received or receivable by the operator in the fiscal year from a person or partnership, because of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of subparagraph 1 of the second paragraph of section 16.1 or subparagraph a of subparagraph 1 of the second paragraph of section 16.9 or 16.11; and
(2)  B is the aggregate of
(a)  the total of all amounts each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development, within the meaning of section 1 of the Taxation Act (chapter I-3) carried out in Canada, to the extent that the expense may be considered to relate to the operator’s mining operation,
(b)  the total of all amounts each of which is a gift made by the operator in the fiscal year, to the extent that the gift is referred to in section 710 of the Taxation Act, if that section is read without reference to subparagraphs vi to viii of paragraph a, and provided that the total of the gifts does not exceed 10% of the total referred to in subparagraph a of subparagraph 1,
(c)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation and mine development allowance in respect of expenses incurred before 31 March 2010,
(d)  subject to sections 16.7 and 16.8, the amount deducted by the operator, for the fiscal year, as an exploration allowance in respect of expenses incurred after 30 March 2010,
(e)  the total of all amounts each of which is a general administrative expense incurred by the operator in the fiscal year, in relation to exploration work,
(f)  subject to section 16.10, the amount deducted by the operator, for the fiscal year, as a pre-production development allowance in respect of expenses incurred after 30 March 2010, and
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance in respect of expenses incurred before 31 March 2010.
For the purposes of subparagraph a of subparagraph 1 of the second paragraph, the annual earnings of the operator for a fiscal year in respect of each mine it operates in that fiscal year is equal to the amount determined by the formula
C - D.
In the formula in the third paragraph,
(1)  C is the aggregate of
(a)  the portion of the gross value of the operator’s annual output for the fiscal year that is reasonably attributable to the operation of the mine,
(b)  if, for the purpose of determining the gross value of the operator’s annual output for the fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the amount that would be the portion of the gross value of annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine if that value had been determined according to the method used by the operator to determine the gross value of annual output for the fiscal year, exceeds the amount that is the portion of the gross value of annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine,
(c)  if particular gemstones from the mine have not been mixed with other gemstones, if the operator alienates those particular gemstones in the fiscal year in favour of a person to whom the operator is not related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act, at the time of the alienation and if the value of the particular gemstones was taken into consideration in determining the gross value of the operator’s annual output for a preceding fiscal year, the amount, if any, by which the amount received or receivable as consideration for that alienation exceeds the value taken into consideration,
(d)  an amount, other than government assistance, received or receivable by the operator in the fiscal year, from a person or partnership, because of an expense incurred by the operator in respect of the mine for a particular fiscal year that is an expense deducted in computing the operator’s annual earnings in respect of the mine for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph a of subparagraph 1 of the second paragraph of section 16.13,
(e)  the amount determined in accordance with section 10.2 or 10.3 for the fiscal year that is reasonably attributable to the operation of the mine,
(f)  the lesser of the operator’s cumulative contributions account at the end of the fiscal year relating to the mine and the aggregate of all amounts each of which is an amount that relates to the reclamation of land that is or was used for the operation of the mine, and that is included, under paragraph z or z.1 of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary,
(g)  any amount included, under paragraph w of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that the operator is deemed to have paid to the Minister under sections 1029.8.36.168, 1029.8.36.170, 1029.8.36.171.1, 1029.8.36.171.2 and 1029.8.36.173 of that Act and that is reasonably attributable to the operation of the mine,
(h)  if the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of sections 87.3 and 87.3.1 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a partner of the operator is deemed to have paid to the Minister under section 1029.8.36.169 or 1029.8.36.171 of that Act and that is reasonably attributable to the operation of the mine, and
(i)  if the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of section 87.3 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a partner of the operator is deemed to have paid to the Minister under sections 1029.8.36.174 and 1029.8.36.175 of that Act and that is reasonably attributable to the operation of the mine; and
(2)  D is the aggregate of
(a)  the total of all expenses each of which is an expense, other than an expense referred to in subparagraph e of subparagraph 2 of the second paragraph, incurred by the operator in respect of the mine, for the fiscal year, to the extent that the expense was incurred to realize the portion of the gross value of the operator’s annual output that is reasonably attributable to the operation of the mine and provided that the expense relates directly thereto,
(b)  subject to sections 10 and 10.1.1, the amount deducted by the operator, for the fiscal year, as a depreciation allowance that is reasonably attributable to the operation of the mine,
(c)  the amount that the operator is required to deduct, for the fiscal year, in respect of the mine as a post-production development allowance in accordance with the first paragraph of section 16.12,
(d)  subject to section 21, the amount deducted by the operator, for the fiscal year, in respect of the mine as a processing allowance,
(e)  subject to section 26.0.1, the amount deducted by the operator, for the fiscal year, as an additional depreciation allowance that is reasonably attributable to the operation of the mine,
(f)  the amount determined in accordance with section 10.4 or 10.5, for the fiscal year, that is reasonably attributable to the operation of the mine,
(g)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine that is reasonably attributable to the operation of the mine,
(h)  subject to section 26.4, the amount deducted by the operator, for the fiscal year, in respect of the mine as an additional allowance for a mine situated in Northern Québec,
(i)  the aggregate of all amounts each of which is an amount paid by the operator for the reclamation of land that is or was used for the operation of the mine, and deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary,
(j)  if, for the purpose of determining the gross value of the operator’s annual output for a fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the amount that is the portion of the gross value of the operator’s annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine exceeds the amount that would be the portion of the gross value of the operator’s annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine if that value had been determined using the method used by the operator to determine the gross value of the annual output for the fiscal year, and
(k)  if particular gemstones from the mine have not been mixed with other gemstones, if the operator alienates those particular gemstones in the fiscal year in favour of a person to whom the operator is not related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act, at the time of the alienation and if the value of those particular gemstones was taken into consideration in determining the gross value of the operator’s annual output for a preceding fiscal year, the amount, if any, by which the value thus taken into consideration exceeds the amount received or receivable as consideration for that alienation.
For the purpose of computing the annual profit of an eligible operator for a fiscal year that begins after 30 March 2010, the following rules apply:
(1)  the operator is deemed, for that fiscal year, to operate only one mine;
(2)  subparagraph a of subparagraph 1 of the second paragraph is to be read as follows:
“(a) the amount, positive or negative, determined for the fiscal year in respect of the operator according to the rules set out in the third and fourth paragraphs;”;
(3)  subparagraph b of subparagraph 2 of the second paragraph is to be read as if of the total was replaced by of the positive amount, if any, ; and
(4)  the portion of the third paragraph before the formula is to be read as follows:
For the purposes of subparagraph a of subparagraph 1 of the second paragraph, the amount, positive or negative, determined for the fiscal year in respect of the operator that is the annual earnings from the mine that the operator is deemed to operate in that fiscal year, is equal to the amount determined by the formula .
The annual profit of an operator for a fiscal year that begins before 31 March 2010 is equal to the amount determined under this section, as it read before that date. However, for the purpose of determining the annual profit of an operator for a fiscal year that ends after 30 March 2010 and that includes that date, this section, as it read on 30 March 2010, is to be read
(1)  as if for the purposes of subparagraph b of subparagraph 1 of section 16.1 in subparagraph b of paragraph 1 was replaced by for the purposes of subparagraph b of subparagraph 1 of the second paragraph of section 16.1 and subparagraph a of subparagraph 1 of the second paragraph of any of sections 16.9, 16.11 and 16.13 ;
(2)  as if 8.6 and 10 in subparagraph d of paragraph 2 was replaced by 8.6, 10 and 10.1.1 ; and
(3)  as if the following subparagraphs were inserted after subparagraph e of paragraph 2:
“(e.1) subject to sections 16.7 and 16.8, the amount deducted by the operator, for the fiscal year, as an exploration allowance in respect of expenses incurred after 30 March 2010;
“(e.2) subject to section 16.10, the amount deducted by the operator, for the fiscal year, as a pre-production development allowance in respect of expenses incurred after 30 March 2010;
“(e.3) the amount that the operator is required to deduct, for the fiscal year, as a post-production development allowance in respect of expenses incurred after 30 March 2010 in accordance with the first paragraph of section 16.12.”.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3; 1997, c. 85, s. 19; 1999, c. 83, s. 5; 2000, c. 5, s. 2; 2001, c. 51, s. 5; 2004, c. 21, s. 30; 2011, c. 6, s. 21; 2015, c. 8, s. 44.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year that begins after 30 March 2010 is equal to the amount determined by the formula
A - B.
In the formula in the first paragraph,
(1)  A is the aggregate of
(a)  the total of all amounts each of which is the annual earnings, as determined according to the rules set out in the third and fourth paragraphs, of the operator for that fiscal year in respect of each mine it operates in that fiscal year, and
(b)  an amount, other than government assistance, received or receivable by the operator in the fiscal year from a person or partnership, because of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of subparagraph 1 of the second paragraph of section 16.1 or subparagraph a of subparagraph 1 of the second paragraph of section 16.9 or 16.11; and
(2)  B is the aggregate of
(a)  the total of all amounts each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development, within the meaning of section 1 of the Taxation Act (chapter I-3) carried out in Canada, to the extent that the expense may be considered to relate to the operator’s mining operation,
(b)  the total of all amounts each of which is a gift made by the operator in the fiscal year, to the extent that the gift is referred to in section 710 of the Taxation Act, if that section is read without reference to subparagraphs vi to viii of paragraph a, and provided that the total of the gifts does not exceed 10% of the total referred to in subparagraph a of subparagraph 1,
(c)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation and mine development allowance in respect of expenses incurred before 31 March 2010,
(d)  subject to sections 16.7 and 16.8, the amount deducted by the operator, for the fiscal year, as an exploration allowance in respect of expenses incurred after 30 March 2010,
(e)  the total of all amounts each of which is a general administrative expense incurred by the operator in the fiscal year, in relation to exploration work,
(f)  subject to section 16.10, the amount deducted by the operator, for the fiscal year, as a pre-production development allowance in respect of expenses incurred after 30 March 2010, and
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance in respect of expenses incurred before 31 March 2010.
For the purposes of subparagraph a of subparagraph 1 of the second paragraph, the annual earnings of the operator for a fiscal year in respect of each mine it operates in that fiscal year is equal to the amount determined by the formula
C - D.
In the formula in the third paragraph,
(1)  C is the aggregate of
(a)  the portion of the gross value of the operator’s annual output for the fiscal year that is reasonably attributable to the operation of the mine,
(b)  if, for the purpose of determining the gross value of the operator’s annual output for the fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the amount that would be the portion of the gross value of annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine if that value had been determined according to the method used by the operator to determine the gross value of annual output for the fiscal year, exceeds the amount that is the portion of the gross value of annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine,
(c)  if particular gemstones from the mine have not been mixed with other gemstones, if the operator alienates those particular gemstones in the fiscal year in favour of a person to whom the operator is not related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act, at the time of the alienation and if the value of the particular gemstones was taken into consideration in determining the gross value of the operator’s annual output for a preceding fiscal year, the amount, if any, by which the amount received or receivable as consideration for that alienation exceeds the value taken into consideration,
(d)  an amount, other than government assistance, received or receivable by the operator in the fiscal year, from a person or partnership, because of an expense incurred by the operator in respect of the mine for a particular fiscal year that is an expense deducted in computing the operator’s annual earnings in respect of the mine for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph a of subparagraph 1 of the second paragraph of section 16.13,
(e)  the amount determined in accordance with section 10.2 or 10.3 for the fiscal year that is reasonably attributable to the operation of the mine,
(f)  the lesser of the operator’s cumulative contributions account at the end of the fiscal year relating to the mine and the aggregate of all amounts each of which is an amount that relates to the reclamation of land that is or was used for the operation of the mine, and that is included, under paragraph z or z.1 of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary,
(g)  any amount included, under paragraph w of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that the operator is deemed to have paid to the Minister of Revenue under sections 1029.8.36.168, 1029.8.36.170, 1029.8.36.171.1, 1029.8.36.171.2 and 1029.8.36.173 of that Act and that is reasonably attributable to the operation of the mine,
(h)  if the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of sections 87.3 and 87.3.1 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a partner of the operator is deemed to have paid to the Minister of Revenue under section 1029.8.36.169 or 1029.8.36.171 of that Act and that is reasonably attributable to the operation of the mine, and
(i)  if the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of section 87.3 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a partner of the operator is deemed to have paid to the Minister of Revenue under sections 1029.8.36.174 and 1029.8.36.175 of that Act and that is reasonably attributable to the operation of the mine; and
(2)  D is the aggregate of
(a)  the total of all expenses each of which is an expense, other than an expense referred to in subparagraph e of subparagraph 2 of the second paragraph, incurred by the operator in respect of the mine, for the fiscal year, to the extent that the expense was incurred to realize the portion of the gross value of the operator’s annual output that is reasonably attributable to the operation of the mine and provided that the expense relates directly thereto,
(b)  subject to sections 10 and 10.1.1, the amount deducted by the operator, for the fiscal year, as a depreciation allowance that is reasonably attributable to the operation of the mine,
(c)  the amount that the operator is required to deduct, for the fiscal year, in respect of the mine as a post-production development allowance in accordance with the first paragraph of section 16.12,
(d)  subject to section 21, the amount deducted by the operator, for the fiscal year, in respect of the mine as a processing allowance,
(e)  subject to section 26.0.1, the amount deducted by the operator, for the fiscal year, as an additional depreciation allowance that is reasonably attributable to the operation of the mine,
(f)  the amount determined in accordance with section 10.4 or 10.5, for the fiscal year, that is reasonably attributable to the operation of the mine,
(g)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine that is reasonably attributable to the operation of the mine,
(h)  subject to section 26.4, the amount deducted by the operator, for the fiscal year, in respect of the mine as an additional allowance for a mine situated in Northern Québec,
(i)  the aggregate of all amounts each of which is an amount paid by the operator for the reclamation of land that is or was used for the operation of the mine, and deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary,
(j)  if, for the purpose of determining the gross value of the operator’s annual output for a fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the amount that is the portion of the gross value of the operator’s annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine exceeds the amount that would be the portion of the gross value of the operator’s annual output for the preceding fiscal year that is reasonably attributable to the operation of the mine if that value had been determined using the method used by the operator to determine the gross value of the annual output for the fiscal year, and
(k)  if particular gemstones from the mine have not been mixed with other gemstones, if the operator alienates those particular gemstones in the fiscal year in favour of a person to whom the operator is not related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act, at the time of the alienation and if the value of those particular gemstones was taken into consideration in determining the gross value of the operator’s annual output for a preceding fiscal year, the amount, if any, by which the value thus taken into consideration exceeds the amount received or receivable as consideration for that alienation.
For the purpose of computing the annual profit of an eligible operator for a fiscal year that begins after 30 March 2010, the following rules apply:
(1)  the operator is deemed, for that fiscal year, to operate only one mine;
(2)  subparagraph a of subparagraph 1 of the second paragraph is to be read as follows:
“(a) the amount, positive or negative, determined for the fiscal year in respect of the operator according to the rules set out in the third and fourth paragraphs;”;
(3)  subparagraph b of subparagraph 2 of the second paragraph is to be read as if of the total was replaced by of the positive amount, if any, ; and
(4)  the portion of the third paragraph before the formula is to be read as follows:
For the purposes of subparagraph a of subparagraph 1 of the second paragraph, the amount, positive or negative, determined for the fiscal year in respect of the operator that is the annual earnings from the mine that the operator is deemed to operate in that fiscal year, is equal to the amount determined by the formula .
The annual profit of an operator for a fiscal year that begins before 31 March 2010 is equal to the amount determined under this section, as it read before that date. However, for the purpose of determining the annual profit of an operator for a fiscal year that ends after 30 March 2010 and that includes that date, this section, as it read on 30 March 2010, is to be read
(1)  as if for the purposes of subparagraph b of subparagraph 1 of section 16.1 in subparagraph b of paragraph 1 was replaced by for the purposes of subparagraph b of subparagraph 1 of the second paragraph of section 16.1 and subparagraph a of subparagraph 1 of the second paragraph of any of sections 16.9, 16.11 and 16.13 ;
(2)  as if 8.6 and 10 in subparagraph d of paragraph 2 was replaced by 8.6, 10 and 10.1.1 ; and
(3)  as if the following subparagraphs were inserted after subparagraph e of paragraph 2:
“(e.1) subject to sections 16.7 and 16.8, the amount deducted by the operator, for the fiscal year, as an exploration allowance in respect of expenses incurred after 30 March 2010;
“(e.2) subject to section 16.10, the amount deducted by the operator, for the fiscal year, as a pre-production development allowance in respect of expenses incurred after 30 March 2010;
“(e.3) the amount that the operator is required to deduct, for the fiscal year, as a post-production development allowance in respect of expenses incurred after 30 March 2010 in accordance with the first paragraph of section 16.12.”.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3; 1997, c. 85, s. 19; 1999, c. 83, s. 5; 2000, c. 5, s. 2; 2001, c. 51, s. 5; 2004, c. 21, s. 30; 2011, c. 6, s. 21.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year is the amount by which
(1)  the aggregate of
(a)  the gross value of the operator’s annual output for that fiscal year;
(a.1)  where, for the purpose of determining the gross value of the operator’s annual output for a fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the value that would be the gross value of annual output for the preceding fiscal year if that value had been established on the basis of the method used by the operator to determine the gross value of annual output for the fiscal year, exceeds the gross value of annual output for the preceding fiscal year;
(b)  an amount, other than government assistance, received or receivable by the operator during the fiscal year from a person or partnership, by reason of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of paragraph 1 of section 16.1; and
(c)  the amount determined under section 10.2 or 10.3 for that fiscal year;
(d)  the lesser of the operator’s cumulative contributions account at the end of the fiscal year and the aggregate of all amounts each of which is an amount that relates to the reclamation of land that is a mining operation, and that is included, under paragraph z or z.1 of section 87 of the Taxation Act (chapter I-3), in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary;
(e)  any amount included, under paragraph w of section 87 of the Taxation Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that the operator is deemed to have paid to the Minister of Revenue under sections 1029.8.36.168, 1029.8.36.170, 1029.8.36.171.1, 1029.8.36.171.2 and 1029.8.36.173 of that Act;
(f)  where the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of sections 87.3 and 87.3.1 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a member of the operator is deemed to have paid to the Minister of Revenue under section 1029.8.36.169 or 1029.8.36.171 of that Act; and
(g)  where the operator is a partnership, any amount included, under paragraph w of section 87 of the Taxation Act because of section 87.3 of that Act, in computing the operator’s income for the fiscal year for the purposes of that Act, in relation to an amount that a legal person that is a member of the operator is deemed to have paid to the Minister of Revenue under sections 1029.8.36.174 and 1029.8.36.175 of that Act; exceeds
(2)  the aggregate of
(a)  the total of all expenses each of which is an expense incurred by the operator in respect of a mining operation, for the fiscal year, to the extent that the expense was incurred to realize the gross value of the annual output from the mining operation and provided that the expense relates directly thereto;
(b)  the total of all expenses each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development work carried out in Canada, to the extent that it may be considered to relate to the operator’s mining operation;
(c)  the total of all gifts each of which is a gift made in Québec by the operator during the fiscal year for cultural, educational or charitable purposes, to the extent that the gift is referred to in section 710 of the Taxation Act, if that section were read without reference to subparagraphs vi to viii of paragraph a, and provided that the total of the gifts does not exceed 10% of annual profit, determined without reference to this subparagraph or to subparagraphs f to h and j;
(d)  subject to sections 8.6 and 10, the amount deducted by the operator, for the fiscal year, as a depreciation allowance;
(e)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation or mine development allowance;
(f)  subject to section 17, the amount deducted by the operator, for the fiscal year, as an investment allowance;
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance;
(h)  subject to section 21, the amount deducted by the operator, for the fiscal year, as a processing allowance;
(h.1)  subject to sections 8.6 and 26.0.1, the amount deducted by the operator, for the fiscal year, as an additional depreciation allowance;
(i)  the amount determined in accordance with section 10.4 or 10.5 for the fiscal year;
(j)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine;
(k)  the aggregate of all amounts each of which is an amount paid by the operator for the reclamation of land that is a mining operation, and that is deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary;
(l)  where, for the purpose of determining the gross value of the operator’s annual output for a fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the gross value of annual output for the preceding fiscal year exceeds the value that would be the gross value of annual output for the preceding fiscal year if that value had been established on the basis of the method used by the operator to determine the gross value of annual output for the fiscal year.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3; 1997, c. 85, s. 19; 1999, c. 83, s. 5; 2000, c. 5, s. 2; 2001, c. 51, s. 5; 2004, c. 21, s. 30.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year is the amount by which
(1)  the aggregate of
(a)  the gross value of the operator’s annual output for that fiscal year;
(a.1)  where, for the purpose of determining the gross value of the operator’s annual output for a fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the value that would be the gross value of annual output for the preceding fiscal year if that value had been established on the basis of the method used by the operator to determine the gross value of annual output for the fiscal year, exceeds the gross value of annual output for the preceding fiscal year;
(b)  an amount, other than government assistance, received or receivable by the operator during the fiscal year from a person or partnership, by reason of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of paragraph 1 of section 16.1; and
(c)  the amount determined under section 10.2 or 10.3 for that fiscal year;
(d)  the lesser of the operator’s cumulative contributions account at the end of the fiscal year and the aggregate of all amounts each of which is an amount that relates to the reclamation of land that is a mining operation, and that is included, under paragraph z or z.1 of section 87 of the Taxation Act (chapter I-3), in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary ;
exceeds
(2)  the aggregate of
(a)  the total of all expenses each of which is an expense incurred by the operator in respect of a mining operation, for the fiscal year, to the extent that the expense was incurred to realize the gross value of the annual output from the mining operation and provided that the expense relates directly thereto;
(b)  the total of all expenses each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development work carried out in Canada, to the extent that it may be considered to relate to the operator’s mining operation;
(c)  the total of all gifts each of which is a gift made in Québec by the operator during the fiscal year for cultural, educational or charitable purposes, to the extent that the gift is referred to in section 710 of the Taxation Act (chapter I-3), if that section were read without reference to subparagraphs vi to viii of paragraph a, and provided that the total of the gifts does not exceed 10 % of annual profit, determined without reference to this subparagraph or to subparagraphs f to h and j;
(d)  subject to sections 8.6 and 10, the amount deducted by the operator, for the fiscal year, as a depreciation allowance;
(e)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation or mine development allowance;
(f)  subject to section 17, the amount deducted by the operator, for the fiscal year, as an investment allowance;
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance;
(h)  subject to section 21, the amount deducted by the operator, for the fiscal year, as a processing allowance;
(h.1)  subject to sections 8.6 and 26.0.1, the amount deducted by the operator, for the fiscal year, as an additional depreciation allowance;
(i)  the amount determined in accordance with section 10.4 or 10.5 for the fiscal year;
(j)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine;
(k)  the aggregate of all amounts each of which is an amount paid by the operator for the reclamation of land that is a mining operation, and that is deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary;
(l)  where, for the purpose of determining the gross value of the operator’s annual output for a fiscal year, the Minister authorizes under section 6.1 the use of a method for the fiscal year that differs from the method used by the operator for the preceding fiscal year, the amount, if any, by which the gross value of annual output for the preceding fiscal year exceeds the value that would be the gross value of annual output for the preceding fiscal year if that value had been established on the basis of the method used by the operator to determine the gross value of annual output for the fiscal year.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3; 1997, c. 85, s. 19; 1999, c. 83, s. 5; 2000, c. 5, s. 2; 2001, c. 51, s. 5.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year is the amount by which
(1)  the aggregate of
(a)  the gross value of the operator’s annual output for that fiscal year;
(b)  an amount, other than government assistance, received or receivable by the operator during the fiscal year from a person or partnership, by reason of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of paragraph 1 of section 16.1; and
(c)  the amount determined under section 10.2 or 10.3 for that fiscal year;
(d)  the lesser of the operator’s cumulative contributions account at the end of the fiscal year and the aggregate of all amounts each of which is an amount that relates to the reclamation of land that is a mining operation, and that is included, under paragraph z or z.1 of section 87 of the Taxation Act (chapter I-3), in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary ;
exceeds
(2)  the aggregate of
(a)  the total of all expenses each of which is an expense incurred by the operator in respect of a mining operation, for the fiscal year, to the extent that the expense was incurred to realize the gross value of the annual output from the mining operation and provided that the expense relates directly thereto;
(b)  the total of all expenses each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development work carried out in Canada, to the extent that it may be considered to relate to the operator’s mining operation;
(c)  the total of all gifts each of which is a gift made in Québec by the operator during the fiscal year for cultural, educational or charitable purposes, to the extent that the gift is referred to in section 710 of the Taxation Act (chapter I-3), if that section were read without reference to subparagraphs vi to viii of paragraph a, and provided that the total of the gifts does not exceed 10 % of annual profit, determined without reference to this subparagraph or to subparagraphs f to h and j;
(d)  subject to sections 8.6 and 10, the amount deducted by the operator, for the fiscal year, as a depreciation allowance;
(e)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation or mine development allowance;
(f)  subject to section 17, the amount deducted by the operator, for the fiscal year, as an investment allowance;
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance;
(h)  subject to section 21, the amount deducted by the operator, for the fiscal year, as a processing allowance;
(h.1)  subject to sections 8.6 and 26.0.1, the amount deducted by the operator, for the fiscal year, as an additional depreciation allowance;
(i)  the amount determined in accordance with section 10.4 or 10.5 for the fiscal year;
(j)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine;
(k)  the aggregate of all amounts each of which is an amount paid by the operator for the reclamation of land that is a mining operation, and that is deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal year for the purposes of that Act, in respect of an environmental trust under which the operator is a beneficiary.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3; 1997, c. 85, s. 19; 1999, c. 83, s. 5; 2000, c. 5, s. 2.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year is the amount by which
(1)  the aggregate of
(a)  the gross value of the operator’s annual output for that fiscal year;
(b)  an amount, other than government assistance, received or receivable by the operator during the fiscal year from a person or partnership, by reason of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of paragraph 1 of section 16.1; and
(c)  the amount determined under section 10.2 or 10.3 for that fiscal year;
(d)  the lesser of the operator’s cumulative contributions account at the end of the fiscal period and the aggregate of all amounts each of which is an amount included, under paragraph z or z.1 of section 87 of the Taxation Act (chapter I‐3), in computing the operator’s income for the fiscal period for the purposes of that Act, in respect of a mining reclamation trust under which the operator is a beneficiary;
exceeds
(2)  the aggregate of
(a)  the total of all expenses each of which is an expense incurred by the operator in respect of a mining operation, for the fiscal year, to the extent that the expense was incurred to realize the gross value of the annual output from the mining operation and provided that the expense relates directly thereto;
(b)  the total of all expenses each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development work carried out in Canada, to the extent that it may be considered to relate to the operator’s mining operation;
(c)  the total of all gifts each of which is a gift made in Québec by the operator during the fiscal year for cultural, educational or charitable purposes, to the extent that the gift is referred to in section 710 of the Taxation Act (chapter I‐3), if that section were read without reference to subparagraphs vi to viii of paragraph a, and provided that the total of the gifts does not exceed 10 % of annual profit, determined without reference to this subparagraph or to subparagraphs f to h and j;
(d)  subject to sections 8.6 and 10, the amount deducted by the operator, for the fiscal year, as a depreciation allowance;
(e)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation or mine development allowance;
(f)  subject to section 17, the amount deducted by the operator, for the fiscal year, as an investment allowance;
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance;
(h)  subject to section 21, the amount deducted by the operator, for the fiscal year, as a processing allowance;
(h.1)  subject to sections 8.6 and 26.0.1, the amount deducted by the operator, for the fiscal year, as an additional depreciation allowance;
(i)  the amount determined in accordance with section 10.4 or 10.5 for the fiscal year;
(j)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine;
(k)  the aggregate of all amounts each of which is an amount deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal period for the purposes of that Act, in respect of a mining reclamation trust under which the operator is a beneficiary.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3; 1997, c. 85, s. 19; 1999, c. 83, s. 5.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year is the amount by which
(1)  the aggregate of
(a)  the gross value of the operator’s annual output for that fiscal year;
(b)  an amount, other than government assistance, received or receivable by the operator during the fiscal year from a person or partnership, by reason of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of paragraph 1 of section 16.1; and
(c)  the amount determined under section 10.2 or 10.3 for that fiscal year;
(d)  the lesser of the operator’s cumulative contributions account at the end of the fiscal period and the aggregate of all amounts each of which is an amount included, under paragraph z or z.1 of section 87 of the Taxation Act (chapter I-3), in computing the operator’s income for the fiscal period for the purposes of that Act, in respect of a mining reclamation trust under which the operator is a beneficiary;
exceeds
(2)  the aggregate of
(a)  the total of all expenses each of which is an expense incurred by the operator in respect of a mining operation, for the fiscal year, to the extent that the expense was incurred to realize the gross value of the annual output from the mining operation and provided that the expense relates directly thereto;
(b)  the total of all expenses each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development work carried out in Canada, to the extent that it may be considered to relate to the operator’s mining operation;
(c)  the total of all gifts each of which is a gift made in Québec by the operator during the fiscal year for cultural, educational or charitable purposes, to the extent that the gift is referred to in any of paragraphs a to f of section 710 of the Taxation Act (chapter I-3) and provided that the total of the gifts does not exceed 10 % of annual profit, determined without reference to this subparagraph or to subparagraphs f to h and j;
(d)  subject to sections 8.6 and 10, the amount deducted by the operator, for the fiscal year, as a depreciation allowance;
(e)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation or mine development allowance;
(f)  subject to section 17, the amount deducted by the operator, for the fiscal year, as an investment allowance;
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance;
(h)  subject to section 21, the amount deducted by the operator, for the fiscal year, as a processing allowance;
(h.1)  subject to sections 8.6 and 26.0.1, the amount deducted by the operator, for the fiscal year, as an additional depreciation allowance;
(i)  the amount determined in accordance with section 10.4 or 10.5 for the fiscal year;
(j)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine;
(k)  the aggregate of all amounts each of which is an amount deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal period for the purposes of that Act, in respect of a mining reclamation trust under which the operator is a beneficiary.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3; 1997, c. 85, s. 19.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year is the amount by which
(1)  the aggregate of
(a)  the gross value of the operator’s annual output for that fiscal year;
(b)  an amount, other than government assistance, received or receivable by the operator during the fiscal year from a person or partnership, by reason of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of paragraph 1 of section 16.1; and
(c)  the amount determined under section 10.2 or 10.3 for that fiscal year;
(d)  the lesser of the operator’s cumulative contributions account at the end of the fiscal period and the aggregate of all amounts each of which is an amount included, under paragraph z or z.1 of section 87 of the Taxation Act (chapter I-3), in computing the operator’s income for the fiscal period for the purposes of that Act, in respect of a mining reclamation trust under which the operator is a beneficiary;
exceeds
(2)  the aggregate of
(a)  the total of all expenses each of which is an expense incurred by the operator in respect of a mining operation, for the fiscal year, to the extent that the expense was incurred to realize the gross value of the annual output from the mining operation and provided that the expense relates directly thereto;
(b)  the total of all expenses each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development work carried out in Canada, to the extent that it may be considered to relate to the operator’s mining operation;
(c)  the total of all gifts each of which is a gift made in Québec by the operator during the fiscal year for cultural, educational or charitable purposes, to the extent that the gift is referred to in any of paragraphs a to f of section 710 of the Taxation Act (chapter I-3) and provided that the total of the gifts does not exceed 10 % of annual profit, determined without reference to this subparagraph or to subparagraphs f to h and j;
(d)  subject to sections 8.6 and 10, the amount deducted by the operator, for the fiscal year, as a depreciation allowance;
(e)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation or mine development allowance;
(f)  subject to section 17, the amount deducted by the operator, for the fiscal year, as an investment allowance;
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance;
(h)  subject to section 21, the amount deducted by the operator, for the fiscal year, as a processing allowance;
(i)  the amount determined in accordance with section 10.4 or 10.5 for the fiscal year;
(j)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine;
(k)  the aggregate of all amounts each of which is an amount deductible under paragraph r or s of section 157 of the Taxation Act in computing the operator’s income for the fiscal period for the purposes of that Act, in respect of a mining reclamation trust under which the operator is a beneficiary.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4; 1996, c. 39, s. 3.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year is the amount by which
(1)  the aggregate of
(a)  the gross value of the operator’s annual output for that fiscal year;
(b)  an amount, other than government assistance, received or receivable by the operator during the fiscal year from a person or partnership, by reason of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of paragraph 1 of section 16.1; and
(c)  the amount determined under section 10.2 or 10.3 for that fiscal year;
exceeds
(2)  the aggregate of
(a)  the total of all expenses each of which is an expense incurred by the operator in respect of a mining operation, for the fiscal year, to the extent that the expense was incurred to realize the gross value of the annual output from the mining operation and provided that the expense relates directly thereto;
(b)  the total of all expenses each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development work carried out in Canada, to the extent that it may be considered to relate to the operator’s mining operation;
(c)  the total of all gifts each of which is a gift made in Québec by the operator during the fiscal year for cultural, educational or charitable purposes, to the extent that the gift is referred to in any of paragraphs a to f of section 710 of the Taxation Act (chapter I-3) and provided that the total of the gifts does not exceed 10 % of annual profit, determined without reference to this subparagraph or to subparagraphs f to h and j;
(d)  subject to sections 8.6 and 10, the amount deducted by the operator, for the fiscal year, as a depreciation allowance;
(e)  subject to section 16, the amount deducted by the operator, for the fiscal year, as an exploration, mineral deposit evaluation or mine development allowance;
(f)  subject to section 17, the amount deducted by the operator, for the fiscal year, as an investment allowance;
(g)  subject to section 19.1, the amount deducted by the operator, for the fiscal year, as an additional exploration allowance;
(h)  subject to section 21, the amount deducted by the operator, for the fiscal year, as a processing allowance;
(i)  the amount determined in accordance with section 10.4 or 10.5 for the fiscal year;
(j)  subject to section 26.1, the amount deducted by the operator, for the fiscal year, as an additional allowance for a northern mine.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8; 1996, c. 4, s. 4.
8. Subject to section 8.0.1, the annual profit of an operator for a fiscal year is the amount by which
(1)  the aggregate of
(a)  the gross value of the operator’s annual output for that fiscal year;
(b)  an amount, other than government assistance, received or receivable by the operator during the fiscal year from a person or partnership, by reason of an expense incurred by the operator for a particular fiscal year and that is an expense deducted in computing annual profit for the particular fiscal year or an expense taken into account for the particular fiscal year, for the purposes of subparagraph b of paragraph 1 of section 16.1; and
(c)  the amount determined under section 10.2 or 10.3 for that fiscal year;
exceeds
(2)  the aggregate of
(a)  the total of all expenses each of which is an expense incurred by the operator in respect of a mining operation, for the fiscal year, to the extent that the expense was incurred to realize the gross value of the annual output from the mining operation and provided that the expense relates directly thereto;
(b)  the total of all expenses each of which is an expense incurred by the operator, for the fiscal year, for scientific research and experimental development work carried out in Canada, to the extent that it may be considered to relate to the operator’s mining operation;
(c)  the total of all gifts each of which is a gift made in Québec by the operator during the fiscal year for cultural, educational or charitable purposes, to the extent that the gift is referred to in any of paragraphs a to f of section 710 of the Taxation Act (chapter I-3) and provided that the total of the gifts does not exceed 10 % of annual profit, determined without reference to this subparagraph or to subparagraphs f to h;
(d)  subject to sections 8.6 and 14, the amount determined in accordance with section 10, claimed by the operator for the fiscal year as a depreciation allowance;
(e)  the amount determined in accordance with section 16, claimed by the operator for the fiscal year as an exploration, mineral deposit evaluation or mine development allowance;
(f)  the amount determined in accordance with section 17, claimed by the operator for the fiscal year as an investment allowance;
(g)  the amount determined in accordance with section 19.1, claimed by the operator for the fiscal year as an additional exploration allowance;
(h)  the amount determined in accordance with section 21, claimed by the operator for the fiscal year as a processing allowance; and
(i)  the amount determined in accordance with section 10.4 or 10.5 for the fiscal year.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477; 1994, c. 47, s. 8.
8. The annual profit, for each fiscal year, is equal to the gross value of the annual output, after deducting therefrom the operating expenses of the mine, the mill, the smelter and the other installations incurred in order to realize such gross value and, in particular, the following expenses:
(a)  salaries and wages of employees and workmen engaged in mining;
(b)  general and administrative expenses directly connected with mining;
(c)  the cost of any research carried out in Québec for the purpose of reducing production costs or of salvaging additional mineral products, less the revenue derived from such research;
(d)  contributions paid by the employer with respect to employees and workmen engaged in mining, under the Act respecting industrial accidents and occupational diseases (chapter A-3.001), the Act respecting labour standards (chapter N-1.1), the Act respecting collective agreements decrees (chapter D-2) and the Unemployment Insurance Act (Revised Statutes of Canada, 1985, chapter U-1);
(e)  contributions made for the purpose of ensuring the safety, welfare or health of the employees or workmen engaged in mining;
(f)  all gifts made in Québec during the fiscal year for cultural, educational or charitable purposes to organizations approved by the Minister but not in excess of 10 % of the annual profit before deduction of such gifts;
(g)  the cost of power required for mining;
(h)  the cost of explosives, fuel and other property consumed in mining;
(i)  the cost of insurance upon the output of the mine and upon moveable and immoveable property actually used in mining;
(j)  municipal and school taxes incurred by the operator, with respect to mining or property actually used for mining;
(k)  the cost of transportation of the output of the mine if borne by the operator;
(l)  expenditures for maintenance and repair incurred during the fiscal year with respect to moveable and immoveable property actually used in mining;
(m)  the cost of work done during the fiscal year with respect to shafts, excavations, drifts, trenches, borings or other means of exploration or development in the lands of the mine for the working thereof or for mineral exploration;
(n)  the mining exploration and development expenses incurred during the fiscal year in Québec on lands other than those which are the site of the principal mining operation, provided that such expenses are borne by the operator and that a detailed analysis thereof is submitted to the Minister; and
(o)  an allowance, as provided in sections 9 to 26, for depreciation, development, investment and treatment of ore.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477.
8. The annual profit, for each fiscal year, is equal to the gross value of the annual output, after deducting therefrom the operating expenses of the mine, the mill, the smelter and the other installations incurred in order to realize such gross value and, in particular, the following expenses:
(a)  salaries and wages of employees and workmen engaged in mining;
(b)  general and administrative expenses directly connected with mining;
(c)  the cost of any research carried out in Québec for the purpose of reducing production costs or of salvaging additional mineral products, less the revenue derived from such research;
(d)  contributions paid by the employer with respect to employees and workmen engaged in mining, under the Act respecting industrial accidents and occupational diseases (chapter A-3.001), the Act respecting labour standards (chapter N-1.1), the Act respecting collective agreements decrees (chapter D-2) and the 1971 Unemployment Insurance Act (Statutes of Canada);
(e)  contributions made for the purpose of ensuring the safety, welfare or health of the employees or workmen engaged in mining;
(f)  all gifts made in Québec during the fiscal year for cultural, educational or charitable purposes to organizations approved by the Minister but not in excess of 10 per cent of the annual profit before deduction of such gifts;
(g)  the cost of power required for mining;
(h)  the cost of explosives, fuel and other property consumed in mining;
(i)  the cost of insurance upon the output of the mine and upon moveable and immoveable property actually used in mining;
(j)  municipal and school taxes incurred by the operator, with respect to mining or property actually used for mining;
(k)  the cost of transportation of the output of the mine if borne by the operator;
(l)  expenditures for maintenance and repair incurred during the fiscal year with respect to moveable and immoveable property actually used in mining;
(m)  the cost of work done during the fiscal year with respect to shafts, excavations, drifts, trenches, borings or other means of exploration or development in the lands of the mine for the working thereof or for mineral exploration;
(n)  the mining exploration and development expenses incurred during the fiscal year in Québec on lands other than those which are the site of the principal mining operation, provided that such expenses are borne by the operator and that a detailed analysis thereof is submitted to the Minister; and
(o)  an allowance, as provided in sections 9 to 26, for depreciation, development, investment and treatment of ore.
1975, c. 30, s. 8; 1979, c. 45, s. 149; 1985, c. 6, s. 477.
8. The annual profit, for each fiscal year, is equal to the gross value of the annual output, after deducting therefrom the operating expenses of the mine, the mill, the smelter and the other installations incurred in order to realize such gross value and, in particular, the following expenses:
(a)  salaries and wages of employees and workmen engaged in mining;
(b)  general and administrative expenses directly connected with mining;
(c)  the cost of any research carried out in Québec for the purpose of reducing production costs or of salvaging additional mineral products, less the revenue derived from such research;
(d)  contributions paid by the employer with respect to employees and workmen engaged in mining, under the Workmen’s Compensation Act (chapter A-3), the Act respecting labour standards (chapter N-1.1), the Act respecting collective agreements decrees (chapter D-2) and the 1971 Unemployment Insurance Act (Statutes of Canada);
(e)  contributions made for the purpose of ensuring the safety, welfare or health of the employees or workmen engaged in mining;
(f)  all gifts made in Québec during the fiscal year for cultural, educational or charitable purposes to organizations approved by the Minister but not in excess of 10 per cent of the annual profit before deduction of such gifts;
(g)  the cost of power required for mining;
(h)  the cost of explosives, fuel and other property consumed in mining;
(i)  the cost of insurance upon the output of the mine and upon moveable and immoveable property actually used in mining;
(j)  municipal and school taxes incurred by the operator, with respect to mining or property actually used for mining;
(k)  the cost of transportation of the output of the mine if borne by the operator;
(l)  expenditures for maintenance and repair incurred during the fiscal year with respect to moveable and immoveable property actually used in mining;
(m)  the cost of work done during the fiscal year with respect to shafts, excavations, drifts, trenches, borings or other means of exploration or development in the lands of the mine for the working thereof or for mineral exploration;
(n)  the mining exploration and development expenses incurred during the fiscal year in Québec on lands other than those which are the site of the principal mining operation, provided that such expenses are borne by the operator and that a detailed analysis thereof is submitted to the Minister; and
(o)  an allowance, as provided in sections 9 to 26, for depreciation, development, investment and treatment of ore.
1975, c. 30, s. 8; 1979, c. 45, s. 149.
8. The annual profit, for each fiscal year, is equal to the gross value of the annual output, after deducting therefrom the operating expenses of the mine, the mill, the smelter and the other installations incurred in order to realize such gross value and, in particular, the following expenses:
(a)  salaries and wages of employees and workmen engaged in mining;
(b)  general and administrative expenses directly connected with mining;
(c)  the cost of any research carried out in Québec for the purpose of reducing production costs or of salvaging additional mineral products, less the revenue derived from such research;
(d)  contributions paid by the employer with respect to employees and workmen engaged in mining, under the Workmen’s Compensation Act (chapter A-3), the Minimum Wage Act (chapter S-1), the Act respecting collective agreements decrees (chapter D-2) and the 1971 Unemployment Insurance Act (Statutes of Canada);
(e)  contributions made for the purpose of ensuring the safety, welfare or health of the employees or workmen engaged in mining;
(f)  all gifts made in Québec during the fiscal year for cultural, educational or charitable purposes to organizations approved by the Minister but not in excess of 10 per cent of the annual profit before deduction of such gifts;
(g)  the cost of power required for mining;
(h)  the cost of explosives, fuel and other property consumed in mining;
(i)  the cost of insurance upon the output of the mine and upon moveable and immoveable property actually used in mining;
(j)  municipal and school taxes incurred by the operator, with respect to mining or property actually used for mining;
(k)  the cost of transportation of the output of the mine if borne by the operator;
(l)  expenditures for maintenance and repair incurred during the fiscal year with respect to moveable and immoveable property actually used in mining;
(m)  the cost of work done during the fiscal year with respect to shafts, excavations, drifts, trenches, borings or other means of exploration or development in the lands of the mine for the working thereof or for mineral exploration;
(n)  the mining exploration and development expenses incurred during the fiscal year in Québec on lands other than those which are the site of the principal mining operation, provided that such expenses are borne by the operator and that a detailed analysis thereof is submitted to the Minister; and
(o)  an allowance, as provided in sections 9 to 26, for depreciation, development, investment and treatment of ore.
1975, c. 30, s. 8.