I-0.4 - Mining Tax Act

Full text
8.1.1. Subject to the third paragraph, an operator’s mine-mouth output value for a fiscal year that begins after 31 December 2013 in respect of a mine it operates in the fiscal year 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 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 and the preceding fiscal year began after 31 December 2013, the amount included in computing the annual earnings from the mine for the fiscal year under subparagraph b of subparagraph 1 of the fourth paragraph of section 8,
(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 (chapter I-3), 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 that began after 31 December 2013, the amount included in computing the annual earnings from the mine for the fiscal year under subparagraph c of subparagraph 1 of the fourth paragraph of section 8,
(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 began after 31 December 2013 and that is an expense deducted in computing the operator’s mine-mouth output value in respect of the mine for the particular fiscal year, and
(e)  the amount determined in accordance with section 10.12 or 10.13 for the fiscal year that is reasonably attributable to the operation of the mine; and
(2)  B is the aggregate of
(a)  the total of all expenses each of which is an expense incurred by the operator in respect of the mine, for the fiscal year, that is deductible in computing the operator’s annual earnings from the mine for the fiscal year and that is reasonably attributable to activities consisting in the crushing, milling, sieving, processing, handling, transportation or storage of a mineral substance from its first accumulation site following its extraction from the mine and, if applicable, of the processing products obtained, and activities consisting in the marketing of the mineral substance and, if applicable, of the processing products obtained, including the general and administrative expenses that the operator incurs in the fiscal year and that relate to the crushing, milling, sieving, processing, handling, transportation, storage and marketing activities,
(b)  subject to sections 10.9 and 10.11, 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 adjustment amount determined in accordance with section 10.14, for the fiscal year, that is reasonably attributable to the operation of the mine,
(d)  subject to section 20.1, the amount deducted by the operator, for the fiscal year, in respect of the mine as a processing allowance,
(e)  the amount determined in accordance with section 10.15 or 10.16, for the fiscal year, that is reasonably attributable to the operation of the mine,
(f)  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 and the preceding fiscal year began after 31 December 2013, the amount deducted in computing the annual earnings from the mine for the fiscal year under subparagraph j of subparagraph 2 of the fourth paragraph of section 8, and
(g)  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 that began after 31 December 2013, the amount deducted in computing the annual earnings from the mine for the fiscal year under subparagraph k of subparagraph 2 of the fourth paragraph of section 8.
Where the operator’s mine-mouth output value for the fiscal year in respect of a mine it operates in the fiscal year is less than 10% of the amount that would be determined as such for the fiscal year in respect of the mine if the second paragraph were read without reference to subparagraphs d and e of its subparagraph 1 and subparagraphs a to e of its subparagraph 2, the operator’s mine-mouth output value for the fiscal year in respect of the mine is deemed to be equal to 10% of the amount so determined.
2015, c. 21, s. 49; 2017, c. 292017, c. 29, s. 13.
8.1.1. Subject to the third paragraph, an operator’s mine-mouth output value for a fiscal year that begins after 31 December 2013 in respect of a mine it operates in the fiscal year 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 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 and the preceding fiscal year began after 31 December 2013, the amount included in computing the annual earnings from the mine for the fiscal year under subparagraph b of subparagraph 1 of the fourth paragraph of section 8,
(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 (chapter I-3), 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 that began after 31 December 2013, the amount included in computing the annual earnings from the mine for the fiscal year under subparagraph c of subparagraph 1 of the fourth paragraph of section 8,
(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 began after 31 December 2013 and that is an expense deducted in computing the operator’s mine-mouth output value in respect of the mine for the particular fiscal year, and
(e)  the amount determined in accordance with section 10.12 or 10.13 for the fiscal year that is reasonably attributable to the operation of the mine; and
(2)  B is the aggregate of
(a)  the total of all expenses each of which is an expense incurred by the operator in respect of the mine, for the fiscal year, that is deductible in computing the operator’s annual earnings from the mine for the fiscal year and that is reasonably attributable to activities consisting in the crushing, milling, sieving, processing, handling, transportation or storage of a mineral substance from its first accumulation site following its extraction from the mine and, if applicable, of the processing products obtained, and activities consisting in the marketing of the mineral substance and, if applicable, of the processing products obtained, including the general and administrative expenses that the operator incurs in the fiscal year and that relate to the crushing, milling, sieving, processing, handling, transportation, storage and marketing activities,
(b)  subject to sections 10.9 and 10.11, 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 adjustment amount determined in accordance with section 10.14, for the fiscal year, that is reasonably attributable to the operation of the mine,
(d)  subject to section 20.1, the amount deducted by the operator, for the fiscal year, in respect of the mine as a processing allowance,
(e)  the amount determined in accordance with section 10.15 or 10.16, for the fiscal year, that is reasonably attributable to the operation of the mine,
(f)  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 and the preceding fiscal year began after 31 December 2013, the amount deducted in computing the annual earnings from the mine for the fiscal year under subparagraph j of subparagraph 2 of the fourth paragraph of section 8, and
(g)  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 that began after 31 December 2013, the amount deducted in computing the annual earnings from the mine for the fiscal year under subparagraph k of subparagraph 2 of the fourth paragraph of section 8.
If the operator’s mine-mouth output value for the fiscal year in respect of a mine it operates in the fiscal year is less than 10% of 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, the operator’s mine-mouth output value for the fiscal year in respect of the mine is deemed to be equal to 10% of that portion.
2015, c. 21, s. 49.