I-0.4 - Mining Tax Act

Section 10.11 Disposition versions

2015-10-21

10.11. Subject to section 9.1.1, the amount that an operator may deduct, under subparagraph b of subparagraph 2 of the second paragraph of section 8.1.1, in respect of class 4A property as a depreciation allowance in computing the mine-mouth output value in respect of a mine it operates, for a fiscal year, must not exceed the portion, reasonably attributable to the operation of the mine, of the lesser of

(1)  the amount obtained by multiplying the undepreciated capital cost of the property of that class at the end of the fiscal year before any deduction under that subparagraph b at the end of the fiscal year, by 30%; and

(2)  where the operator no longer owns property of that class at the end of the fiscal year, zero.

Despite the first paragraph, an operator may deduct an amount as a depreciation allowance in respect of class 4A property in computing the mine-mouth output value in respect of a mine it operates, for a fiscal year, only if it deducts the maximum amount as a depreciation allowance in respect of class 1A property, class 2A property and class 3A property in computing the mine-mouth output value in respect of the mine, for the fiscal year.

2015, c. 21, s. 61.