I-0.4 - Mining Tax Act

Section 9 Disposition versions

2021-12-10

9. In this division,

“alienation of property” means any transaction or event which confers the right to the proceeds of the alienation of property;

“class 1 property” means a road, a building or equipment purchased before 1 April 1975 and actually used in the mining operation;

“class 1A property” means a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, that the operator owns at the time of the transfer and that is included in class 1 property at that time;

“class 2 property” means a road, building or equipment purchased after 31 March 1975 and before 13 May 1994 and actually used in the mining operation;

“class 2A property” means a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, that the operator owns at the time of the transfer and that is included in class 2 property at that time;

“class 3 property” means a road, a building, equipment or service property regularly used in the mining operation and acquired either after 12 May 1994 and before 31 March 2010 or after 30 March 2010 but not later than 30 March 2011 if, in the latter case,

(1)  the property is acquired in accordance with a written obligation contracted not later than 30 March 2010; or

(2)  the construction of the property by the operator, or on the operator’s behalf, is begun on or before 30 March 2010;

“class 3A property” means a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, that the operator owns at the time of the transfer and that is included in class 3 property at that time;

“class 4 property” means a road, a building, equipment or service property acquired after 30 March 2010 that is neither class 3 property nor class 4A property and that is regularly used in the mining operation;

“class 4A property” means

(1)  a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, that the operator owns at the time of the transfer and that is included in class 4 property at that time; and

(2)  a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, that is acquired by the operator after the time of the transfer, that is a road, a building, equipment or service property and that is regularly used in the mining operation;

“proceeds of alienation” of property, subject to subdivision 5 and taking into account the necessary adjustments by reason of the application of section 9.2, means

(1)  the sale price of property alienated;

(2)  compensation for property unlawfully appropriated by a person;

(3)  compensation for property destroyed, and any amount received or receivable under an insurance policy in respect of the loss or destruction of property;

(4)  compensation for property appropriated by a person under statutory authority, or in respect of which the person has given a notice of intention to so appropriate it;

(5)  compensation for acts or omissions of a person whether or not acting in the exercise of a right, under statutory authority or otherwise, that injuriously affect property;

(6)  compensation for property damage and any amount received or receivable under an insurance policy covering such damage, except to the extent that the compensation or amount, as the case may be, is expended to repair the damage within a reasonable time after the damage is caused; and

(7)  the amount by which the liability of the owner of property to a creditor is extinguished as a result of the transfer of the property to the creditor or of the forgiveness of the debt;

“property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine” means, subject to the second paragraph, a processing asset or a property all or substantially all of which is used in the crushing, milling, sieving, handling, transportation or storage of the mineral substance from its first accumulation site following its extraction from the mine and, if applicable, the processing products obtained;

“time of the transfer” means the time that corresponds to the beginning of the first fiscal year of an operator that begins after 31 December 2013;

“undepreciated capital cost” of property of a class of an operator, at any time, means the amount by which

(1)  the aggregate of

(a)  the total of all amounts each of which is the capital cost to the operator of each property of the class acquired before that time;

(b)  the total of all amounts each of which is an amount determined in accordance with the second paragraph of section 10.2 or 10.12, in respect of that class, for a fiscal year ending before that time;

(c)  the total of all amounts each of which is an amount determined in accordance with section 10.3 or 10.13, in respect of that class, for a fiscal year ending before that time; and

(d)  the total of all amounts each of which is an amount of government assistance, determined taking into account, where applicable, the adjustment, provided for in section 9.2, of the capital cost of the property of that class to which the amount of assistance relates, that was repaid by the operator, before that time, pursuant to a legal obligation, subsequent to the alienation of the property and that would have been included in determining the capital cost of the property under section 9.1 had the repayment been made before the alienation; exceeds

(2)  the aggregate of

(a)  the total of all amounts each of which is an amount allowed to the operator as a depreciation allowance for a fiscal year ending before that time, in respect of property of that class;

(b)  the total of all amounts each of which is an amount, where the operator before that time alienated property of that class, that is the lesser of the proceeds of alienation of the property minus any expenses made or incurred by the operator for the purpose of making the alienation, and the capital cost to the operator of the property;

(c)  the total of all amounts each of which is an amount determined in accordance with the second paragraph of section 10.4 or 10.15, in respect of that class, for a fiscal year ending before that time;

(d)  the total of all amounts each of which is an amount determined in accordance with section 10.5 or 10.16, in respect of that class, for a fiscal year ending before that time;

(e)  the total of all amounts each of which is an amount of government assistance, determined taking into account, where applicable, the adjustment, provided for in section 9.2, of the capital cost of the property of that class to which the amount of assistance relates, that the operator received or was entitled to receive before that time subsequent to the alienation of the property and that would have been included under section 9.1 in the amount of assistance that the operator received or was entitled to receive in respect of the property had the amount been received before the alienation of the property;

(f)  the total of all amounts each of which is an amount determined for a fiscal year ending before 13 May 1994 and that is applied to reduce the depreciation allowance in respect of a property of that class, for the portion of the property used in part for purposes other than mining operation;

(g)  the total of all amounts each of which is an amount determined for a fiscal year ending before that time under section 8.6, as it read before being repealed, and that is applied to reduce the depreciation allowance in respect of the property of that class; and

(h)  the total of all amounts each of which is an amount determined in respect of that class in accordance with paragraph c of section 13, as it read before 13 May 1994.

A property used in the course of the operator’s marketing activities or administrative activities is not a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine.

1975, c. 30, s. 9; 1994, c. 47, s. 11; 2011, c. 6, s. 27; 2015, c. 21, s. 52; 2021, c. 36, s. 38.

2015-10-21

9. In this division,

“alienation of property” means any transaction or event which confers the right to the proceeds of the alienation of property;

“class 1 property” means a road, a building or equipment purchased before 1 April 1975 and actually used in the mining operation;

“class 1A property” means a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, that the operator owns at the time of the transfer and that is included in class 1 property at that time;

“class 2 property” means a road, building or equipment purchased after 31 March 1975 and before 13 May 1994 and actually used in the mining operation;

“class 2A property” means a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, that the operator owns at the time of the transfer and that is included in class 2 property at that time;

“class 3 property” means a road, a building, equipment or service property regularly used in the mining operation and acquired either after 12 May 1994 and before 31 March 2010 or after 30 March 2010 but not later than 30 March 2011 if, in the latter case,

(1)  the property is acquired in accordance with a written obligation contracted not later than 30 March 2010; or

(2)  the construction of the property by the operator, or on the operator’s behalf, is begun on or before 30 March 2010;

“class 3A property” means a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, that the operator owns at the time of the transfer and that is included in class 3 property at that time;

“class 4 property” means a road, a building, equipment or service property acquired after 30 March 2010 that is neither class 3 property nor class 4A property and that is regularly used in the mining operation;

“class 4A property” means

(1)  a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, that the operator owns at the time of the transfer and that is included in class 4 property at that time; and

(2)  a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine, that is acquired by the operator after the time of the transfer, that is a road, a building, equipment or service property and that is regularly used in the mining operation;

“proceeds of alienation” of property means, subject to subdivision 5,

(1)  the sale price of property alienated;

(2)  compensation for property unlawfully appropriated by a person;

(3)  compensation for property destroyed, and any amount received or receivable under an insurance policy in respect of the loss or destruction of property;

(4)  compensation for property appropriated by a person under statutory authority, or in respect of which the person has given a notice of intention to so appropriate it;

(5)  compensation for acts or omissions of a person whether or not acting in the exercise of a right, under statutory authority or otherwise, that injuriously affect property;

(6)  compensation for property damage and any amount received or receivable under an insurance policy covering such damage, except to the extent that the compensation or amount, as the case may be, is expended to repair the damage within a reasonable time after the damage is caused; and

(7)  the amount by which the liability of the owner of property to a creditor is extinguished as a result of the transfer of the property to the creditor or of the forgiveness of the debt;

“property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine” means, subject to the second paragraph, a processing asset or a property all or substantially all of which is used in the crushing, milling, sieving, handling, transportation or storage of the mineral substance from its first accumulation site following its extraction from the mine and, if applicable, the processing products obtained;

“time of the transfer” means the time that corresponds to the beginning of the first fiscal year of an operator that begins after 31 December 2013;

“undepreciated capital cost” of property of a class of an operator, at any time, means the amount by which

(1)  the aggregate of

(a)  the total of all amounts each of which is the capital cost to the operator of each property of the class acquired before that time;

(b)  the total of all amounts each of which is an amount determined in accordance with the second paragraph of section 10.2 or 10.12, in respect of that class, for a fiscal year ending before that time;

(c)  the total of all amounts each of which is an amount determined in accordance with section 10.3 or 10.13, in respect of that class, for a fiscal year ending before that time; and

(d)  the total of all amounts each of which is an amount of government assistance that was repaid by the operator, before that time, pursuant to a legal obligation, subsequent to the alienation of the property and that would have been included in determining the capital cost of the property under section 9.1 had the repayment been made before the alienation; exceeds

(2)  the aggregate of

(a)  the total of all amounts each of which is an amount allowed to the operator as a depreciation allowance for a fiscal year ending before that time, in respect of property of that class;

(b)  the total of all amounts each of which is an amount, where the operator before that time alienated property of that class, that is the lesser of the proceeds of alienation of the property minus any expenses made or incurred by the operator for the purpose of making the alienation, and the capital cost to the operator of the property;

(c)  the total of all amounts each of which is an amount determined in accordance with the second paragraph of section 10.4 or 10.15, in respect of that class, for a fiscal year ending before that time;

(d)  the total of all amounts each of which is an amount determined in accordance with section 10.5 or 10.16, in respect of that class, for a fiscal year ending before that time;

(e)  the total of all amounts each of which is an amount of government assistance that the operator received or was entitled to receive before that time subsequent to the alienation of the property and that would have been included under section 9.1 in the amount of assistance that the operator received or was entitled to receive in respect of the property had the amount been received before the alienation of the property;

(f)  the total of all amounts each of which is an amount determined for a fiscal year ending before 13 May 1994 and that is applied to reduce the depreciation allowance in respect of a property of that class, for the portion of the property used in part for purposes other than mining operation;

(g)  the total of all amounts each of which is an amount determined for a fiscal year ending before that time under section 8.6, as it read before being repealed, and that is applied to reduce the depreciation allowance in respect of the property of that class; and

(h)  the total of all amounts each of which is an amount determined in respect of that class in accordance with paragraph c of section 13, as it read before 13 May 1994.

A property used in the course of the operator’s marketing activities or administrative activities is not a property used in mining operation activities from the first accumulation site of a mineral substance following its extraction from the mine.

1975, c. 30, s. 9; 1994, c. 47, s. 11; 2011, c. 6, s. 27; 2015, c. 21, s. 52.

2011-06-06

9. In this division,

“alienation of property” means any transaction or event which confers the right to the proceeds of the alienation of property;

“class 1 property” means a road, a building or equipment purchased before 1 April 1975 and actually used in the mining operation;

“class 2 property” means a road, building or equipment purchased after 31 March 1975 and before 13 May 1994 and actually used in the mining operation;

“class 3 property” means a road, a building, equipment or service property regularly used in the mining operation and acquired either after 12 May 1994 and before 31 March 2010 or after 30 March 2010 but not later than 30 March 2011 if, in the latter case,

(1)  the property is acquired in accordance with a written obligation contracted not later than 30 March 2010; or

(2)  the construction of the property by the operator, or on the operator’s behalf, is begun on or before 30 March 2010;

“class 4 property” means a road, a building or service property acquired after 30 March 2010 that is not class 3 property and is regularly used in the mining operation;

“proceeds of alienation” of property means

(1)  the sale price of property alienated;

(2)  compensation for property unlawfully appropriated by a person;

(3)  compensation for property destroyed, and any amount received or receivable under an insurance policy in respect of the loss or destruction of property;

(4)  compensation for property appropriated by a person under statutory authority, or in respect of which the person has given a notice of intention to so appropriate it;

(5)  compensation for acts or omissions of a person whether or not acting in the exercise of a right, under statutory authority or otherwise, that injuriously affect property;

(6)  compensation for property damage and any amount received or receivable under an insurance policy covering such damage, except to the extent that the compensation or amount, as the case may be, is expended to repair the damage within a reasonable time after the damage is caused; and

(7)  the amount by which the liability of the owner of property to a creditor is extinguished as a result of the transfer of the property to the creditor or of the forgiveness of the debt;

“undepreciated capital cost” of property of a class of an operator, at any time, means the amount by which

(1)  the aggregate of

(a)  the total of all amounts each of which is the capital cost to the operator of each property of the class acquired before that time;

(b)  the total of all amounts each of which is an amount determined in accordance with the second paragraph of section 10.2, in respect of that class, for a fiscal year ending before that time;

(c)  the total of all amounts each of which is an amount determined in accordance with section 10.3, in respect of that class, for a fiscal year ending before that time; and

(d)  the total of all amounts each of which is an amount of government assistance that was repaid by the operator, before that time, pursuant to a legal obligation, subsequent to the alienation of the property and that would have been included in determining the capital cost of the property under section 9.1 had the repayment been made before the alienation; exceeds

(2)  the aggregate of

(a)  the total of all amounts each of which is an amount allowed to the operator as a depreciation allowance for a fiscal year ending before that time, in respect of property of that class;

(b)  the total of all amounts each of which is an amount, where the operator before that time alienated property of that class, that is the lesser of the proceeds of alienation of the property minus any expenses made or incurred by the operator for the purpose of making the alienation, and the capital cost to the operator of the property;

(c)  the total of all amounts each of which is an amount determined in accordance with the second paragraph of section 10.4, in respect of that class, for a fiscal year ending before that time;

(d)  the total of all amounts each of which is an amount determined in accordance with section 10.5, in respect of that class, for a fiscal year ending before that time;

(e)  the total of all amounts each of which is an amount of government assistance that the operator received or was entitled to receive before that time subsequent to the alienation of the property and that would have been included under section 9.1 in the amount of assistance that the operator received or was entitled to receive in respect of the property had the amount been received before the alienation of the property;

(f)  the total of all amounts each of which is an amount determined for a fiscal year ending before 13 May 1994 and that is applied to reduce the depreciation allowance in respect of a property of that class, for the portion of the property used in part for purposes other than mining operation;

(g)  the total of all amounts each of which is an amount determined for a fiscal year ending before that time under section 8.6, as it read before being repealed, and that is applied to reduce the depreciation allowance in respect of the property of that class; and

(h)  the total of all amounts each of which is an amount determined in respect of that class in accordance with paragraph c of section 13, as it read before 13 May 1994.

1975, c. 30, s. 9; 1994, c. 47, s. 11; 2011, c. 6, s. 27.

1994-12-21

9. In this division,

“alienation of property” means any transaction or event which confers the right to the proceeds of the alienation of property;

“proceeds of alienation” of property, taking into account the necessary adjustments by reason of the application of section 9.2, where applicable, means

(1)  the sale price of property alienated;

(2)  compensation for property unlawfully appropriated by a person;

(3)  compensation for property destroyed, and any amount received or receivable under an insurance policy in respect of the loss or destruction of property;

(4)  compensation for property appropriated by a person under statutory authority, or in respect of which the person has given a notice of intention to so appropriate it;

(5)  compensation for acts or omissions of a person whether or not acting in the exercise of a right, under statutory authority or otherwise, that injuriously affect property;

(6)  compensation for property damage and any amount received or receivable under an insurance policy covering such damage, except to the extent that the compensation or amount, as the case may be, is expended to repair the damage within a reasonable time after the damage is caused; and

(7)  the amount by which the liability of the owner of property to a creditor is extinguished as a result of the transfer of the property to the creditor or of the forgiveness of the debt;

“property of the first class” means a road, a building or equipment purchased before 1 April 1975 and actually used in mining operation;

“property of the second class” means a road, a building or equipment purchased after 31 March 1975 and before 13 May 1994 and actually used in mining operation;

“property of the third class” means a road, a building, equipment or a service property acquired after 12 May 1994 and regularly used in mining operation;

“undepreciated capital cost” of property of a class of an operator, at any time, means the amount by which

(1)  the aggregate of

(a)  the total of all amounts each of which is the capital cost to the operator of each property of the class acquired before that time;

(b)  the total of all amounts each of which is an amount determined in accordance with the second paragraph of section 10.2, in respect of that class, for a fiscal year ending before that time;

(c)  the total of all amounts each of which is an amount determined in accordance with section 10.3, in respect of that class, for a fiscal year ending before that time; and

(d)  the total of all amounts each of which is an amount of government assistance, determined taking into account, where applicable, the adjustment provided for in section 9.2, of the capital cost of property of that class to which the amount of assistance relates, that has been repaid by the operator, before that time, pursuant to an obligation to do so, subsequent to the alienation of the property and that would have been included in determining the capital cost thereof under section 9.1 had the repayment been made before the alienation;

exceeds

(2)  the aggregate of

(a)  the total of all amounts each of which is an amount allowed to the operator as a depreciation allowance for a fiscal year ending before that time, in respect of property of that class;

(b)  the total of all amounts each of which is an amount, where the operator before that time alienated property of that class, that is the lesser of the proceeds of alienation of the property minus any expenses made or incurred by the operator for the purpose of making the alienation, and the capital cost to the operator of the property;

(c)  the total of all amounts each of which is an amount determined in accordance with the second paragraph of section 10.4, in respect of that class, for a fiscal year ending before that time;

(d)  the total of all amounts each of which is an amount determined in accordance with section 10.5, in respect of that class, for a fiscal year ending before that time;

(e)  the total of all amounts each of which is an amount of government assistance, determined taking into account, where applicable, the adjustment provided for in section 9.2, of the capital cost of the property of that class to which the amount of assistance relates, that the operator received or was entitled to receive before that time subsequent to the alienation of the property and that would have been included under section 9.1 in the amount of assistance that the operator received or was entitled to receive in respect of the property had the amount been received before the alienation of the property;

(f)  the total of all amounts each of which is an amount determined for a fiscal year ending before 13 May 1994 and that is applied to reduce the depreciation allowance in respect of a property of that class, for the portion of the property used in part for purposes other than mining operation;

(g)  the total of all amounts each of which is an amount determined for a fiscal year ending before that time under section 8.6 and that is applied to reduce the depreciation allowance in respect of the property of that class; and

(h)  the total of all amounts each of which is an amount determined in respect of that class in accordance with paragraph c of section 13, as it read before 13 May 1994.

1975, c. 30, s. 9; 1994, c. 47, s. 11.

1977-12-31

9. For the purposes of this division, the expression

(a)  “property of the first class” means a road, a building or equipment purchased before 1 April 1975 and actually used in mining;

(b)  “property of the second class” means a road, a building or equipment purchased after 31 March 1975 and actually used in mining;

(c)  “disposition” includes any transaction or event which confers the right to the proceeds of disposition of property;

(d)  “proceeds of disposition” of property includes:

i.  the sale price of property disposed of;

ii.  compensation for property appropriated unlawfully;

iii.  compensation for property destroyed, and any amount received or receivable under an insurance policy in respect of the loss or destruction of property;

iv.  compensation for property appropriated by a person under statutory authority, or in respect of which he has given notice of his intention to so appropriate;

v.  compensation for acts and omissions of a person whether or not he is acting in the exercise of a right, under statutory authority or otherwise, that injuriously affect property;

vi.  compensation for property damage and any amount received or receivable under an insurance policy covering such damage, except to the extent that the compensation or amount, as the case may be, is expended to repair the damage within a reasonable delay after the damage is caused;

vii.  the amount by which the liability of an operator to a secured creditor is reduced as the result of the sale of the secured property under a provision of the security, plus any amount received by the operator out of the proceeds of such sale; and

viii.  the amount by which the liability of the owner of property to a creditor is extinguished as the result of the handing over of the property to the creditor.

1975, c. 30, s. 9.