I-0.4 - Mining Tax Act

Section 27 Disposition versions

1994-12-21

27. (Repealed).

1975, c. 30, s. 27; 1985, c. 39, s. 4; 1989, c. 43, s. 2; 1994, c. 47, s. 27.

1989-06-22

27. An operator shall not deduct, in computing his annual profit, any amount in respect of:

(a)  any sum expended, except to the extent to which it was expended by the operator for the purpose of realizing or producing a profit from mining;

(b)  costs of incorporation, organization or reorganization;

(c)  any outlay or expense incurred as cost of work done during the fiscal year with respect to shafts, excavations, drifts, trenches, borings or other means of mining exploration or development referred to in paragraph m of section 8 or as mining exploration and development expenses referred to in paragraph n of that section to the extent that the outlay or expense constitutes an expense incurred

i.  by a person, including a partnership, pursuant to an agreement entered into with the operator or another corporation or partnership, under which the person incurs such expense solely as consideration for a share of the capital stock of the operator or of another corporation or partnership, for an interest in a partnership, or for an interest or right attaching to the share or interest; or

ii.  by a corporation, including the operator, where a share of the capital stock of the corporation was issued to a person, including a partnership, pursuant to an agreement in writing entered into between the person and the corporation, under which the corporation, for any purpose, agreed to incur such expense and to renounce to the person an amount in respect of the expense so incurred by the corporation not exceeding the consideration received by it for the share;

(d)  any loss or replacement of capital, or payment to capital account, except as expressly permitted by this Act;

(e)  amortization of the value of the mine and of the mining land;

(f)  royalties paid in respect of output;

(g)  expenses relating to manufacturing and industrial operations;

(h)  costs of financing;

(i)  duties payable under this Act;

(j)  taxes on profits, capital and places of business and income taxes;

(k)  dividends and any distribution of surplus or capital;

(l)  reserves and provisions;

(m)  the portion of expenses covered by a subsidy or any other assistance; and

(n)  deductions allowed in computing a previous year’s profit.

1975, c. 30, s. 27; 1985, c. 39, s. 4; 1989, c. 43, s. 2.

1988-12-12

27. An operator shall not deduct, in computing his annual profit, any amount in respect of:

(a)  any sum expended, except to the extent to which it was expended by the operator for the purpose of realizing or producing a profit from mining;

(b)  costs of incorporation, organization or reorganization;

(c)  any outlay or expense incurred as cost of work done during the fiscal year with respect to shafts, excavations, drifts, trenches, borings or other means of mining exploration or development referred to in paragraph m of section 8 or as mining exploration and development expenses referred to in paragraph n of that section to the extent that the outlay or expense constitutes an expenditure incurred by a person under an agreement entered into with the operator or another corporation or partnership, whereby the person incurs such expenditure solely as consideration for a share of the capital stock of the operator or of another corporation or partnership, for an interest in a partnership, or for an interest or right attaching to the share or interest;

(d)  any loss or replacement of capital, or payment to capital account, except as expressly permitted by this Act;

(e)  amortization of the value of the mine and of the mining land;

(f)  royalties paid in respect of output;

(g)  expenses relating to manufacturing and industrial operations;

(h)  costs of financing;

(i)  duties payable under this Act;

(j)  taxes on profits, capital and places of business and income taxes;

(k)  dividends and any distribution of surplus or capital;

(l)  reserves and provisions;

(m)  the portion of expenses covered by a subsidy or any other assistance; and

(n)  deductions allowed in computing a previous year’s profit.

1975, c. 30, s. 27; 1985, c. 39, s. 4.

1985-12-19

27. An operator shall not deduct, in computing his annual profit, any amount in respect of:

(a)  any sum expended, except to the extent to which it was expended by the operator for the purpose of realizing or producing a profit from mining;

(b)  costs of incorporation, organization or reorganization;

(c)  any outlay or expense incurred as cost of work done during the fiscal year with respect to shafts, excavations, drifts, trenches, borings or other means of mining exploration or development referred to in paragraph m of section 8 or as mining exploration and development expenses referred to in paragraph n of that section to the extent that the outlay or expense constitutes an expenditure incurred by a person under an agreement entered into with the operator or another corporation or partnership, whereby the person incurs such expenditure solely as consideration for a share of the capital stock of the operator or of another corporation or partnership, for an interest in a partnership, or for an interest or right attaching to the share or interest;

(d)  any loss or replacement of capital, or payment to capital account, except as expressly permitted by this act;

(e)  amortization of the value of the mine and of the mining land;

(f)  royalties paid in respect of output;

(g)  expenses relating to manufacturing and industrial operations;

(h)  costs of financing;

(i)  duties payable under this act;

(j)  taxes on profits, capital and places of business and income taxes;

(k)  dividends and any distribution of surplus or capital;

(l)  reserves and provisions;

(m)  the portion of expenses covered by a subsidy or any other assistance, including any payment under the Emergency Gold Mining Assistance Act (Statutes of Canada); and

(n)  deductions allowed in computing a previous year’s profit.

1975, c. 30, s. 27; 1985, c. 39, s. 4.

1977-12-31

27. An operator shall not deduct, in computing his annual profit, any amount in respect of:

(a)  any sum expended, except to the extent to which it was expended by the operator for the purpose of realizing or producing a profit from mining;

(b)  costs of incorporation, organization or reorganization;

(c)  the cost of development of the mine before the commencement of production in commercial quantities, except as provided in section 16;

(d)  any loss or replacement of capital, or payment to capital account, except as expressly permitted by this act;

(e)  amortization of the value of the mine and of the mining land;

(f)  royalties paid in respect of output;

(g)  expenses relating to manufacturing and industrial operations;

(h)  costs of financing;

(i)  duties payable under this act;

(j)  taxes on profits, capital and places of business and income taxes;

(k)  dividends and any distribution of surplus or capital;

(l)  reserves and provisions;

(m)  the portion of expenses covered by a subsidy or any other assistance, including any payment under the Emergency Gold Mining Assistance Act (Statutes of Canada); and

(n)  deductions allowed in computing a previous year’s profit.

1975, c. 30, s. 27.