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I-0.4 - Mining Tax Act

Section 26.0.1
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26.0.1. Subject to section 26.0.2, the amount deductible under subparagraph e of subparagraph 2 of the fourth paragraph of section 8 by an operator as an additional depreciation allowance, in relation to a processing plant, in computing its annual earnings for a fiscal year from a mine whose ore is processed by that plant must not exceed the portion of the least of the following amounts that is reasonably attributable to the operation of the mine:
(1)  the aggregate of
(a)  the aggregate of all amounts each of which is 15% of the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, and
(b)  the lesser of
i.  the aggregate of all amounts each of which is 15% of the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, and
ii.  zero, if the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, is less than $150,000,000;
(2)  $50,000,000;
(3)  the amount by which the aggregate of all amounts each of which is an amount deducted by the operator, in relation to that processing plant, under subparagraph h.1 of paragraph 2 of section 8, as it read on 30 March 2010, or under subparagraph e of subparagraph 2 of the fourth paragraph of section 8, in computing its annual profit or its annual earnings from any mine, for a preceding fiscal year is exceeded by the aggregate of
(a)  the lesser of
i.  the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, and
ii.  $350,000,000, and
(b)  the lesser of
i.  the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, and
ii.  the lesser of
(1)  $200,000,000, and
(2)  zero, if the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, is less than $150,000,000;
(4)  an amount that is the annual earnings from the mine for the fiscal year, determined without reference to subparagraphs e, g and h of subparagraph 2 of the fourth paragraph of section 8; and
(5)  zero, if the aggregate of all amounts, each of which is the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, is less than $300,000,000.
Property to which the first paragraph refers is class 3 property, within the meaning assigned by the first paragraph of section 9, that
(1)  was acquired new by the operator after 25 March 1997 and before 1 April 1998, otherwise than as property to replace or modernize any other property;
(2)  was used for the first time by the operator after 25 March 1997 and before 1 April 1998;
(3)  (subparagraph repealed).
Property to which the first paragraph refers is class 3 property, within the meaning assigned by the first paragraph of section 9, that
(1)  was acquired new by the operator after 31 December 2003 and before 1 January 2008, otherwise than as property to replace another property;
(2)  was used for the first time by the operator after 31 December 2003 and before 1 January 2008; and
(3)  was, during a minimum period of 730 days beginning on the day of its first use, or during a shorter period in the case of the loss or involuntary destruction of the property by fire, theft or water or of a major breakdown of the property, held and regularly used in mining operation by the operator, in relation to the part of that period during which the operator owned the property, or by another person who acquired the property
(a)  in the course of a reorganization in respect of which, if a dividend were received by a partnership in the course of the reorganization, section 308.1 of the Taxation Act (chapter I-3) would not apply to the dividend because of the application of section 308.3 of that Act, or
(b)  from a person with whom the other person was not dealing at arm’s length, within the meaning of the Taxation Act, otherwise than because of a right referred to in paragraph b of section 20 of that Act, at the time the property was acquired.
1997, c. 85, s. 25; 2001, c. 51, s. 6; 2007, c. 12, s. 7; 2011, c. 6, s. 54; 2015, c. 21, s. 69.
26.0.1. Subject to section 26.0.2, the amount deductible under subparagraph e of subparagraph 2 of the fourth paragraph of section 8 by an operator as an additional depreciation allowance, in relation to a processing plant, in computing its annual earnings for a fiscal year from a mine whose ore is processed by that plant must not exceed the portion of the least of the following amounts that is reasonably attributable to the operation of the mine:
(1)  the aggregate of
(a)  the aggregate of all amounts each of which is 15% of the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, and
(b)  the lesser of
i.  the aggregate of all amounts each of which is 15% of the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, and
ii.  zero, if the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, is less than $150,000,000;
(2)  $50,000,000;
(3)  the amount by which the aggregate of all amounts each of which is an amount deducted by the operator, in relation to that processing plant, under subparagraph h.1 of paragraph 2 of section 8, as it read on 30 March 2010, or under subparagraph e of subparagraph 2 of the fourth paragraph of section 8, in computing its annual profit or its annual earnings from any mine, for a preceding fiscal year is exceeded by the aggregate of
(a)  the lesser of
i.  the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, and
ii.  $350,000,000, and
(b)  the lesser of
i.  the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, and
ii.  the lesser of
(1)  $200,000,000, and
(2)  zero, if the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, is less than $150,000,000;
(4)  an amount that is the annual earnings from the mine for the fiscal year, determined without reference to subparagraphs e, g and h of subparagraph 2 of the fourth paragraph of section 8; and
(5)  zero, if the aggregate of all amounts, each of which is the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, is less than $300,000,000.
Property to which the first paragraph refers is class 3 property, within the meaning assigned by section 9, that
(1)  was acquired new by the operator after 25 March 1997 and before 1 April 1998, otherwise than as property to replace or modernize any other property;
(2)  was used for the first time by the operator after 25 March 1997 and before 1 April 1998;
(3)  (subparagraph repealed).
Property to which the first paragraph refers is class 3 property, within the meaning assigned by section 9, that
(1)  was acquired new by the operator after 31 December 2003 and before 1 January 2008, otherwise than as property to replace another property;
(2)  was used for the first time by the operator after 31 December 2003 and before 1 January 2008; and
(3)  was, during a minimum period of 730 days beginning on the day of its first use, or during a shorter period in the case of the loss or involuntary destruction of the property by fire, theft or water or of a major breakdown of the property, held and regularly used in mining operation by the operator, in relation to the part of that period during which the operator owned the property, or by another person who acquired the property
(a)  in the course of a reorganization in respect of which, if a dividend were received by a partnership in the course of the reorganization, section 308.1 of the Taxation Act (chapter I-3) would not apply to the dividend because of the application of section 308.3 of that Act, or
(b)  from a person with whom the other person was not dealing at arm’s length, within the meaning of the Taxation Act, otherwise than because of a right referred to in paragraph b of section 20 of that Act, at the time the property was acquired.
1997, c. 85, s. 25; 2001, c. 51, s. 6; 2007, c. 12, s. 7; 2011, c. 6, s. 54.
26.0.1. Subject to section 26.0.2, the amount deductible by an operator as an additional depreciation allowance, in relation to a processing plant, in computing annual profit for a fiscal year under subparagraph h.1 of paragraph 2 of section 8, must not exceed the least of
(1)  the aggregate of
(a)  the aggregate of all amounts each of which is 15% of the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, and
(b)  the lesser of
i.  the aggregate of all amounts each of which is 15% of the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, and
ii.  zero, if the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, is less than $150,000,000;
(2)  $50,000,000;
(3)  the amount by which the aggregate of all amounts each of which is an amount allowed, in relation to that processing plant, under subparagraph h.1 of paragraph 2 of section 8 in computing the annual profit of the operator for a preceding fiscal year is exceeded by the aggregate of
(a)  the lesser of
i.  the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, and
ii.  $350,000,000, and
(b)  the lesser of
i.  the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, and
ii.  the lesser of
(1)  $200,000,000, and
(2)  zero, if the aggregate of all amounts each of which is the capital cost to the operator of each property, described in the third paragraph, in relation to that processing plant, is less than $150,000,000;
(4)  an amount that is the annual profit of the operator for the fiscal year, determined before deductions as an additional depreciation allowance and additional allowance for a northern mine referred to in subparagraphs h.1 and j of paragraph 2 of section 8; and
(5)  zero, if the aggregate of all amounts, each of which is the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, is less than $300,000,000.
Property to which the first paragraph refers is property of the third class, within the meaning assigned by section 9, that
(1)  was acquired new by the operator after 25 March 1997 and before 1 April 1998, otherwise than as property to replace or modernize any other property;
(2)  was used for the first time by the operator after 25 March 1997 and before 1 April 1998;
(3)  (subparagraph repealed).
Property to which the first paragraph refers is property of the third class, within the meaning assigned by section 9, that
(1)  was acquired new by the operator after 31 December 2003 and before 1 January 2008, otherwise than as property to replace another property;
(2)  was used for the first time by the operator after 31 December 2003 and before 1 January 2008; and
(3)  was, during a minimum period of 730 days beginning on the day of its first use, or during a shorter period in the case of the loss or involuntary destruction of the property by fire, theft or water or of a major breakdown of the property, held and regularly used in mining operation by the operator, in relation to the part of that period during which the operator owned the property, or by another person who acquired the property
(a)  in the course of a reorganization in respect of which, if a dividend were received by a partnership in the course of the reorganization, section 308.1 of the Taxation Act (chapter I-3) would not apply to the dividend because of the application of section 308.3 of that Act, or
(b)  from a person with whom the other person was not dealing at arm’s length, within the meaning of the Taxation Act, otherwise than because of a right referred to in paragraph b of section 20 of that Act, at the time the property was acquired.
1997, c. 85, s. 25; 2001, c. 51, s. 6; 2007, c. 12, s. 7.
26.0.1. Subject to section 26.0.2, the amount deductible by an operator as an additional depreciation allowance, in relation to a processing plant, in computing annual profit for a fiscal year under subparagraph h.1 of paragraph 2 of section 8, shall not exceed the lesser of
(1)  the aggregate of the amounts each of which is 15 % of the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant;
(2)  $50,000,000;
(3)  the amount by which the aggregate of all amounts each of which is an amount allowed, in relation to that processing plant, under subparagraph h.1 of paragraph 2 of section 8 in computing the annual profit of the operator for a preceding fiscal year is exceeded by the lesser of
(a)  the aggregate of the amounts each of which is the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant; and
(b)  $350,000,000;
(4)  an amount that is the amount by which 65 % of the annual profit of the operator for the fiscal year, determined before deductions as a processing allowance, additional depreciation allowance and additional allowance for a northern mine referred to in subparagraphs h, h.1 and j of paragraph 2 of section 8 exceeds the amount deducted for the fiscal year under that subparagraph h; and
(5)  zero, if the aggregate of all amounts, each of which is the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, is less than $300,000,000.
Property to which the first paragraph refers is property of the third class, within the meaning assigned by section 9, that
(1)  was acquired new by the operator after 25 March 1997 and before 1 April 1998, otherwise than as property to replace or modernize any other property;
(2)  was used for the first time by the operator after 25 March 1997 and before 1 April 1998; and
(3)  is regularly used by the operator in the fiscal year and is in the operator’s possession at the end of that year.
1997, c. 85, s. 25; 2001, c. 51, s. 6.
26.0.1. Subject to section 26.0.2, the amount deductible by an operator as an additional depreciation allowance, in relation to a processing plant, in computing annual profit for a fiscal year under subparagraph h.1 of paragraph 2 of section 8, shall not exceed the lesser of
(1)  the aggregate of the amounts each of which is 15 % of the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant;
(2)  $50,000,000;
(3)  the amount by which the aggregate of all amounts each of which is an amount allowed, in relation to that processing plant, under subparagraph h.1 of paragraph 2 of section 8 in computing the annual profit of the operator for a preceding fiscal year is exceeded by the lesser of
(a)  the aggregate of the amounts each of which is the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant; and
(b)  $350,000,000;
(4)  an amount that is the amount by which 65 % of the annual profit of the operator for the fiscal year, determined before deductions as a processing allowance, additional depreciation allowance and additional allowance for a northern mine referred to in subparagraphs h, h.1 and j of paragraph 2 of section 8 exceeds the amount deducted for the fiscal year under that subparagraph h; and
(5)  zero, if the aggregate of all amounts, each of which is the capital cost to the operator of each property, described in the second paragraph, in relation to that processing plant, is less than $300,000,000.
Property to which the first paragraph refers is a processing asset that
(1)  was acquired new by the operator after 25 March 1997 and before 1 April 1998, otherwise than as property to replace or modernize any other processing asset;
(2)  was used for the first time by the operator after 25 March 1997 and before 1 April 1998; and
(3)  is regularly used by the operator in the fiscal year and is in the operator’s possession at the end of that year.
1997, c. 85, s. 25.
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