I-0.4, r. 1 - Regulation respecting the mining exploration and development expenses and works mentioned in subparagraph d of section 18 of the Mining Tax Act

Updated to 1 September 2012

This document has official status.

chapter I-0.4, r. 1

Regulation respecting the mining exploration and development expenses and works mentioned in subparagraph d of section 18 of the Mining Tax Act

Mining Tax Act

(chapter I-0.4, s. 18).

Implicitly revoked, S.Q. 2011, c. 6, s. 44.

The title of the Act was formerly entitled: «Mining Duties Act». The title of this Act was replaced by section 15 of chapter 6 of the statutes of 2011.

1. Pursuant to subparagraph d of the first paragraph of section 18 of the Mining Tax Act (chapter I-0.4) the costs entailed by the following works may be deducted as an investment allowance:

(a)  diamond drilling carried out on the site of an underground mining operation with the exception of the works mentioned in section 2;

(b)  geological and geophysical works carried out on the mining site; and

(c)  drifting works, with a face surface area not exceeding 20 m2, carried out to explore a target region, provided that the latter is at least 150 m away from any underground opening and at least 200 m from the surface.

R.R.Q., 1981, c. D-15, r. 1, s. 1.

2. The following works may not be included in the investment allowance described in subparagraph d of the first paragraph of section 18 of the Act:

(a)  diamond drilling of drainage holes;

(b)  diamond drilling of pilot holes;

(c)  diamond drilling of ventilation holes;

(d)  diamond drilling for water supply;

(e)  diamond drilling of backfill holes; and

(f)  diamond drilling of holes used to grout fractured rock.

R.R.Q., 1981, c. D-15, r. 1, s. 2.

3. The deductible costs for works referred to in paragraphs a and b of section 1 are:

(a)  where the operator carries out works on his own account: the direct costs of material, labour, maintenance of equipment, additives, supervision, surveying for holes for diamond drilling and the direct costs of labour, maintenance of equipment and supervision for geological and geophysical works;

(b)  where the operator subcontracts works: the overall costs the subcontractor charges to the operator.

R.R.Q., 1981, c. D-15, r. 1, s. 3.

4. The deductible costs of the works referred to in paragraph c of section 1 are the direct costs of material, labour, maintenance of equipment, explosives, power, and supervision.

R.R.Q., 1981, c. D-15, r. 1, s. 4.

5. In order to establish the facts pertinent to the allowance to which an operator is entitled, the latter must draw up a cumulative statement of the works mentioned in this Regulation that have been terminated since 28 March 1979 up until the end of the first fiscal year to end after that date together with a cumulative statement of the works for each subsequent fiscal year.

With respect to drifts for exploration an operator must demonstrate with pertinent plans that the works carried out are in accordance with paragraph c of section 1.

R.R.Q., 1981, c. D-15, r. 1, s. 5.

REFERENCES

R.R.Q., 1981, c. D-15, r. 1

S.Q. 2011, c. 6, s. 290