I-0.4 - Mining Tax Act

Section 16.9 Disposition versions

2017-12-07

16.9. The cumulative exploration expenses of an operator in respect of expenses incurred after 30 March 2010, at any time (in this section referred to as “that time”), are the amount determined by the formula

A - B.

In the formula in the first paragraph,

(1)  A is the aggregate of

(a)  subject to sections 16.14 to 16.18, the aggregate of all amounts each of which is expenses incurred by the operator, after 30 March 2010 and before that time, to determine the existence of a mineral substance in Québec, to locate such a substance or to determine the extent or quality of such a substance, including expenses incurred in prospecting, carrying out geological, geophysical or geochemical surveys, drilling and trenching or digging test pits or preliminary sampling and expenses for environmental studies or community consultations (including, despite subparagraphs i and ii, studies or consultations that are undertaken to obtain a right, licence or privilege to determine the existence of a mineral substance in Québec, to locate such a substance or to determine the extent or quality of such a substance), but not including

i.  any pre-production development expense,

ii.  any post-production development expense, or

iii.  any expense that may reasonably be considered to be attributable to a mine which has come into production in reasonable commercial quantities or to an actual or potential extension of such a mine,

(b)  25% of the aggregate of all amounts each of which is an amount referred to in subparagraph a, other than an amount relating to expenses referred to in any of paragraphs c to d of the definition of “eligible expenses” in the first paragraph of section 1029.8.36.167 of the Taxation Act (chapter I-3) that was taken into account in computing an amount that the operator or a legal person that is a partner of the operator is deemed to have paid to the Minister for a taxation year, within the meaning of Part I of that Act, under Division II.6.15 of Chapter III.1 of Title III of Book IX of Part I of that Act, that was incurred by the operator before that time in Northern Québec,

(c)  the aggregate of all amounts each of which is an amount repaid by the operator before that time pursuant to a legal obligation to repay, in whole or in part, government assistance relating to an amount referred to in subparagraph a, and

(d)  25% of the aggregate of all amounts each of which is an amount repaid by the operator before that time pursuant to a legal obligation to repay, in whole or in part, government assistance relating to an amount referred to in subparagraph b; and

(2)  B is the aggregate of

(a)  the aggregate of all amounts each of which is an amount deducted by the operator in computing its annual profit for a fiscal year that ends after 30 March 2010 and before that time, as an exploration allowance in respect of expenses incurred after 30 March 2010 under subparagraph e.1 of paragraph 2 of section 8, as it read on 30 March 2010, or under subparagraph d of subparagraph 2 of the second paragraph of section 8,

(b)  the aggregate of all amounts each of which is an amount of government assistance relating to an amount referred to in subparagraph a of subparagraph 1, that the operator received or was entitled to receive before that time, and

(c)  25% of the aggregate of all amounts each of which is an amount of government assistance relating to an amount referred to in subparagraph b of subparagraph 1, that the operator received or was entitled to receive before that time.

2011, c. 6, s. 43; 2015, c. 8, s. 47; 2017, c. 29, s. 14.

2015-09-01

16.9. The cumulative exploration expenses of an operator in respect of expenses incurred after 30 March 2010, at any time (in this section referred to as “that time”), are the amount determined by the formula

A - B.

In the formula in the first paragraph,

(1)  A is the aggregate of

(a)  subject to sections 16.14 to 16.18, the aggregate of all amounts each of which is expenses incurred by the operator, after 30 March 2010 and before that time, to determine the existence of a mineral substance in Québec, to locate such a substance or to determine the extent or quality of such a substance, including expenses incurred in prospecting, carrying out geological, geophysical or geochemical surveys, drilling and trenching or digging test pits or preliminary sampling, other than any pre-production development expense, any post-production development expense or any expense that may reasonably be considered to be attributable to a mine which has come into production in reasonable commercial quantities or to an actual or potential extension of such a mine,

(b)  25% of the aggregate of all amounts each of which is an amount referred to in subparagraph a, other than an amount relating to expenses referred to in any of paragraphs c to d of the definition of “eligible expenses” in the first paragraph of section 1029.8.36.167 of the Taxation Act (chapter I-3) that was taken into account in computing an amount that the operator or a legal person that is a partner of the operator is deemed to have paid to the Minister for a taxation year, within the meaning of Part I of that Act, under Division II.6.15 of Chapter III.1 of Title III of Book IX of Part I of that Act, that was incurred by the operator before that time in Northern Québec,

(c)  the aggregate of all amounts each of which is an amount repaid by the operator before that time pursuant to a legal obligation to repay, in whole or in part, government assistance relating to an amount referred to in subparagraph a, and

(d)  25% of the aggregate of all amounts each of which is an amount repaid by the operator before that time pursuant to a legal obligation to repay, in whole or in part, government assistance relating to an amount referred to in subparagraph b; and

(2)  B is the aggregate of

(a)  the aggregate of all amounts each of which is an amount deducted by the operator in computing its annual profit for a fiscal year that ends after 30 March 2010 and before that time, as an exploration allowance in respect of expenses incurred after 30 March 2010 under subparagraph e.1 of paragraph 2 of section 8, as it read on 30 March 2010, or under subparagraph d of subparagraph 2 of the second paragraph of section 8,

(b)  the aggregate of all amounts each of which is an amount of government assistance relating to an amount referred to in subparagraph a of subparagraph 1, that the operator received or was entitled to receive before that time, and

(c)  25% of the aggregate of all amounts each of which is an amount of government assistance relating to an amount referred to in subparagraph b of subparagraph 1, that the operator received or was entitled to receive before that time.

2011, c. 6, s. 43; 2015, c. 8, s. 47.

2011-06-06

16.9. The cumulative exploration expenses of an operator in respect of expenses incurred after 30 March 2010, at any time (in this section referred to as “that time”), are the amount determined by the formula

A - B.

In the formula in the first paragraph,

(1)  A is the aggregate of

(a)  subject to sections 16.14 to 16.18, the aggregate of all amounts each of which is expenses incurred by the operator, after 30 March 2010 and before that time, to determine the existence of a mineral substance in Québec, to locate such a substance or to determine the extent or quality of such a substance, including expenses incurred in prospecting, carrying out geological, geophysical or geochemical surveys, drilling and trenching or digging test pits or preliminary sampling, other than any pre-production development expense, any post-production development expense or any expense that may reasonably be considered to be attributable to a mine which has come into production in reasonable commercial quantities or to an actual or potential extension of such a mine,

(b)  25% of the aggregate of all amounts each of which is an amount referred to in subparagraph a, other than an amount relating to expenses referred to in any of paragraphs c to d of the definition of “eligible expenses” in the first paragraph of section 1029.8.36.167 of the Taxation Act (chapter I-3) that was taken into account in computing an amount that the operator or a legal person that is a partner of the operator is deemed to have paid to the Minister of Revenue for a taxation year, within the meaning of Part I of that Act, under Division II.6.15 of Chapter III.1 of Title III of Book IX of Part I of that Act, that was incurred by the operator before that time in Northern Québec,

(c)  the aggregate of all amounts each of which is an amount repaid by the operator before that time pursuant to a legal obligation to repay, in whole or in part, government assistance relating to an amount referred to in subparagraph a, and

(d)  25% of the aggregate of all amounts each of which is an amount repaid by the operator before that time pursuant to a legal obligation to repay, in whole or in part, government assistance relating to an amount referred to in subparagraph b; and

(2)  B is the aggregate of

(a)  the aggregate of all amounts each of which is an amount deducted by the operator in computing its annual profit for a fiscal year that ends after 30 March 2010 and before that time, as an exploration allowance in respect of expenses incurred after 30 March 2010 under subparagraph e.1 of paragraph 2 of section 8, as it read on 30 March 2010, or under subparagraph d of subparagraph 2 of the second paragraph of section 8,

(b)  the aggregate of all amounts each of which is an amount of government assistance relating to an amount referred to in subparagraph a of subparagraph 1, that the operator received or was entitled to receive before that time, and

(c)  25% of the aggregate of all amounts each of which is an amount of government assistance relating to an amount referred to in subparagraph b of subparagraph 1, that the operator received or was entitled to receive before that time.

2011, c. 6, s. 43.