I-0.4 - Mining Tax Act

Section 10.18 Disposition versions

2017-02-08

10.18. A person or partnership ceasing, for an indeterminate period, all activities that relate to the person’s or partnership’s mining operation is deemed to alienate, at the time (in this paragraph referred to as the “time of the deemed alienation”) that is immediately before the time the fiscal year in which those activities cease ends, in accordance with section 2.1, each of the person’s or partnership’s properties of a class for proceeds of alienation equal to

(1)  where the person or partnership alienates the property at any time, in the course of the cessation of those activities, in favour of another person or partnership to which the person or partnership is related, within the meaning of Chapter IV of Title II of Book I of Part I of the Taxation Act (chapter I-3), and that other person or partnership is an operator for the fiscal year of that other person or partnership including that time, the proportion of the undepreciated capital cost of the class of property which includes the property, determined immediately before the time of the deemed alienation, that the capital cost of the property at that time is of the aggregate of all amounts each of which is the capital cost of a property of that class at the time of the deemed alienation; or

(2)  in any other case, the lesser of the fair market value of the property at the time of the deemed alienation and the capital cost of the property at that time.

Persons or partnerships resuming, at any time, their activities that relate to the mining operation referred to in the first paragraph are deemed to reacquire, at that time, each of the properties referred to in the first paragraph and owned by them at that time for a capital cost equal to the lesser of the fair market value of the property at that time and the proceeds of alienation of the property determined in accordance with the first paragraph.

2015, c. 21, s. 61; 2017, c. 1, s. 55.

2015-10-21

10.18. Persons or partnerships ceasing, for an indeterminate period, all activities that relate to their mining operation are deemed to alienate, at the time (in this paragraph referred to as the “time of the alienation”) that is immediately before the time the fiscal year in which those activities cease ends, in accordance with section 2.1, each of their properties of a class for proceeds of alienation equal to the lesser of the fair market value of the property at the time of the alienation and the capital cost of the property at that time.

Persons or partnerships resuming, at any time, their activities that relate to the mining operation referred to in the first paragraph are deemed to reacquire, at that time, each of the properties referred to in the first paragraph and owned by them at that time for a capital cost equal to the lesser of the fair market value of the property at that time and the proceeds of alienation of the property determined in accordance with the first paragraph.

2015, c. 21, s. 61.