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I-0.4 - Mining Tax Act

Section 35.4
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35.4. If a person or a partnership (in this section referred to as the “purchaser”) acquires, after 12 May 1994, property described in section 9, otherwise than as part of an amalgamation, from another person or partnership (in this section referred to as the “former owner”) to whom 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 if the purchaser is an operator for its fiscal year that includes the acquisition, the following rules apply to a fiscal year ending after the acquisition of the property:
(1)  the property is deemed to have been alienated by the former owner for an amount equal to the proportion of the undepreciated capital cost of the class of property which includes the property, determined immediately before the acquisition, that the capital cost of the property to the former owner is of the aggregate of all amounts each of which is the capital cost of a property of that class;
(2)  subject to paragraphs 3, 4 and 6, the property is deemed to have been acquired by the purchaser at a capital cost equal to the amount determined under paragraph 1;
(3)  for the purposes of sections 20.1 and 21, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner;
(4)  where the cost of the property to the purchaser exceeds the capital cost of the property to the former owner immediately before the acquisition, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner immediately before that time;
(5)  for the purposes of the definition of “undepreciated capital cost” in the first paragraph of section 9, where the capital cost of the property to the former owner exceeds the amount determined under paragraph 1, the capital cost of the property to the purchaser is deemed to be the capital cost of the property to the former owner and the excess amount is deemed to have been allowed to the purchaser as a depreciation allowance in respect of the property for the fiscal years preceding the purchaser’s acquisition of the property;
(6)  for the purposes of section 26.0.1, where the purchaser acquired from the former owner all or substantially all of the class 3 property referred to in that section that was owned by the former owner immediately before the acquisition,
(a)  the property is deemed to have a capital cost to the purchaser equal to the capital cost of the property to the former owner;
(b)  the property is deemed to have been acquired new by the purchaser at the same time as the property was acquired new by the former owner;
(c)  the property is deemed to have been used for the first time by the purchaser at the same time as the property was used for the first time by the former owner;
(c.1)  the property is deemed to have been held by the purchaser and regularly used by the purchaser in a mining operation during any period throughout which the property was held and so used by the former owner; and
(d)  each of the amounts allowed to the former owner as an additional depreciation allowance under subparagraph h.1 of paragraph 2 of section 8 is deemed to have been so allowed to the purchaser as a deduction.
For the purposes of this section, where the acquisition of a property occurs in the circumstances described in subparagraph 1 of the first paragraph of section 10.18, the following rules apply:
(1)  no reference is to be made to subparagraph 1 of the first paragraph;
(2)  the capital cost of the property to the former owner immediately before the acquisition is deemed to be the capital cost of the property to the former owner determined for the purposes of section 10.18; and
(3)  subparagraphs 2 and 5 of the first paragraph are to be read as if “amount determined under paragraph 1” were replaced by “amount determined under subparagraph 1 of the first paragraph of section 10.18 in respect of the property”.
1994, c. 47, s. 38; 1997, c. 85, s. 27; 2001, c. 51, s. 7; 2002, c. 40, s. 16; 2007, c. 12, s. 9; 2011, c. 6, s. 64; 2015, c. 21, s. 79; 2017, c. 1, s. 60.
35.4. If a person or a partnership (in this section referred to as the “purchaser”) acquires, after 12 May 1994, property described in section 9, otherwise than as part of an amalgamation, from another person or partnership (in this section referred to as the “former owner”) to whom 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), the following rules apply to a fiscal year ending after the acquisition of the property:
(1)  the property is deemed to have been alienated by the former owner for an amount equal to the proportion of the undepreciated capital cost of the class of property which includes the property, determined immediately before the acquisition, that the capital cost of the property to the former owner is of the aggregate of all amounts each of which is the capital cost of a property of that class;
(2)  subject to paragraphs 3, 4 and 6, the property is deemed to have been acquired by the purchaser at a capital cost equal to the amount determined under paragraph 1;
(3)  for the purposes of sections 20.1 and 21, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner;
(4)  where the cost of the property to the purchaser exceeds the capital cost of the property to the former owner immediately before the acquisition, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner immediately before that time;
(5)  for the purposes of the definition of “undepreciated capital cost” in the first paragraph of section 9, where the capital cost of the property to the former owner exceeds the amount determined under paragraph 1, the capital cost of the property to the purchaser is deemed to be the capital cost of the property to the former owner and the excess amount is deemed to have been allowed to the purchaser as a depreciation allowance in respect of the property for the fiscal years preceding the purchaser’s acquisition of the property;
(6)  for the purposes of section 26.0.1, where the purchaser acquired from the former owner all or substantially all of the class 3 property referred to in that section that was owned by the former owner immediately before the acquisition,
(a)  the property is deemed to have a capital cost to the purchaser equal to the capital cost of the property to the former owner;
(b)  the property is deemed to have been acquired new by the purchaser at the same time as the property was acquired new by the former owner;
(c)  the property is deemed to have been used for the first time by the purchaser at the same time as the property was used for the first time by the former owner;
(c.1)  the property is deemed to have been held by the purchaser and regularly used by the purchaser in a mining operation during any period throughout which the property was held and so used by the former owner; and
(d)  each of the amounts allowed to the former owner as an additional depreciation allowance under subparagraph h.1 of paragraph 2 of section 8 is deemed to have been so allowed to the purchaser as a deduction.
1994, c. 47, s. 38; 1997, c. 85, s. 27; 2001, c. 51, s. 7; 2002, c. 40, s. 16; 2007, c. 12, s. 9; 2011, c. 6, s. 64; 2015, c. 21, s. 79.
35.4. If a person or a partnership (in this section referred to as the “purchaser”) acquires, after 12 May 1994, property described in section 9, otherwise than as part of an amalgamation, from another person or partnership (in this section referred to as the “former owner”) to whom 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), the following rules apply to a fiscal year ending after the acquisition of the property:
(1)  the property is deemed to have been alienated by the former owner for an amount equal to the proportion of the undepreciated capital cost of the class of property which includes the property, determined immediately before the acquisition, that the capital cost of the property to the former owner is of the aggregate of all amounts each of which is the capital cost of a property of that class;
(2)  subject to paragraphs 3, 4 and 6, the property is deemed to have been acquired by the purchaser at a capital cost equal to the amount determined under paragraph 1;
(3)  for the purposes of section 21, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner;
(4)  where the cost of the property to the purchaser exceeds the capital cost of the property to the former owner immediately before the acquisition, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner immediately before that time;
(5)  for the purposes of the definition of “undepreciated capital cost” in section 9, where the capital cost of the property to the former owner exceeds the amount determined under paragraph 1, the capital cost of the property to the purchaser is deemed to be the capital cost of the property to the former owner and the excess amount is deemed to have been allowed to the purchaser as a depreciation allowance in respect of the property for the fiscal years preceding the purchaser’s acquisition of the property;
(6)  for the purposes of section 26.0.1, where the purchaser acquired from the former owner all or substantially all of the class 3 property referred to in that section that was owned by the former owner immediately before the acquisition,
(a)  the property is deemed to have a capital cost to the purchaser equal to the capital cost of the property to the former owner;
(b)  the property is deemed to have been acquired new by the purchaser at the same time as the property was acquired new by the former owner;
(c)  the property is deemed to have been used for the first time by the purchaser at the same time as the property was used for the first time by the former owner;
(c.1)  the property is deemed to have been held by the purchaser and regularly used by the purchaser in a mining operation during any period throughout which the property was held and so used by the former owner; and
(d)  each of the amounts allowed to the former owner as an additional depreciation allowance under subparagraph h.1 of paragraph 2 of section 8 is deemed to have been so allowed to the purchaser as a deduction.
1994, c. 47, s. 38; 1997, c. 85, s. 27; 2001, c. 51, s. 7; 2002, c. 40, s. 16; 2007, c. 12, s. 9; 2011, c. 6, s. 64.
35.4. Where a person or a partnership, hereinafter referred to as the “purchaser”, acquires, after 12 May 1994, property described in section 9, otherwise than as part of an amalgamation, from another person or partnership to whom the operator is related, hereinafter referred to as the “former owner”, the following rules apply to fiscal years ending after the acquisition of the property:
(1)  the property is deemed to have been alienated by the former owner for an amount equal to the proportion of the undepreciated capital cost of the class of property which includes the property, determined immediately before the acquisition, that the capital cost of the property to the former owner is of the aggregate of all amounts each of which is the capital cost of a property of that class;
(2)  subject to paragraphs 3, 4 and 6, the property is deemed to have been acquired by the purchaser at a capital cost equal to the amount determined under paragraph 1;
(3)  for the purposes of section 21, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner;
(4)  where the cost of the property to the purchaser exceeds the capital cost of the property to the former owner immediately before the acquisition, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner immediately before that time;
(5)  for the purposes of the definition of “undepreciated capital cost” in section 9, where the capital cost of the property to the former owner exceeds the amount determined under paragraph 1, the capital cost of the property to the purchaser is deemed to be the capital cost of the property to the former owner and the excess amount is deemed to have been allowed to the purchaser as a depreciation allowance in respect of the property for the fiscal years preceding the purchaser’s acquisition of the property;
(6)  for the purposes of section 26.0.1, where the purchaser acquired from the former owner all or substantially all of the property of the third class referred to in that section that was owned by the former owner immediately before the acquisition,
(a)  the property is deemed to have a capital cost to the purchaser equal to the capital cost of the property to the former owner;
(b)  the property is deemed to have been acquired new by the purchaser at the same time as the property was acquired new by the former owner;
(c)  the property is deemed to have been used for the first time by the purchaser at the same time as the property was used for the first time by the former owner;
(c.1)  the property is deemed to have been held by the purchaser and regularly used by the purchaser in a mining operation during any period throughout which the property was held and so used by the former owner; and
(d)  each of the amounts allowed to the former owner as an additional depreciation allowance under subparagraph h.1 of paragraph 2 of section 8 is deemed to have been so allowed to the purchaser as a deduction.
1994, c. 47, s. 38; 1997, c. 85, s. 27; 2001, c. 51, s. 7; 2002, c. 40, s. 16; 2007, c. 12, s. 9.
35.4. Where a person or a partnership, hereinafter referred to as the “purchaser”, acquires, after 12 May 1994, property described in section 9, otherwise than as part of an amalgamation, from another person or partnership to whom the operator is related, hereinafter referred to as the “former owner”, the following rules apply to fiscal years ending after the acquisition of the property:
(1)  the property is deemed to have been alienated by the former owner for an amount equal to the proportion of the undepreciated capital cost of the class of property which includes the property, determined immediately before the acquisition, that the capital cost of the property to the former owner is of the aggregate of all amounts each of which is the capital cost of a property of that class;
(2)  subject to paragraphs 3, 4 and 6, the property is deemed to have been acquired by the purchaser at a capital cost equal to the amount determined under paragraph 1;
(3)  for the purposes of section 21, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner;
(4)  where the cost of the property to the purchaser exceeds the capital cost of the property to the former owner immediately before the acquisition, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner immediately before that time;
(5)  for the purposes of the definition of “undepreciated capital cost” in section 9, where the capital cost of the property to the former owner exceeds the amount determined under paragraph 1, the capital cost of the property to the purchaser is deemed to be the capital cost of the property to the former owner and the excess amount is deemed to have been allowed to the purchaser as a depreciation allowance in respect of the property for the fiscal years preceding the purchaser’s acquisition of the property;
(6)  for the purposes of section 26.0.1, where the purchaser acquired from the former owner all or substantially all of the property of the third class referred to in that section that was owned by him immediately before the acquisition,
(a)  the property is deemed to have a capital cost to the purchaser equal to the capital cost of the property to the former owner;
(b)  the property is deemed to have been acquired new by the purchaser at the same time as the property was acquired new by the former owner;
(c)  the property is deemed to have been used for the first time by the purchaser at the same time as the property was used for the first time by the former owner; and
(d)  each of the amounts allowed to the former owner as an additional depreciation allowance under subparagraph h.1 of paragraph 2 of section 8 is deemed to have been so allowed to the purchaser as a deduction.
1994, c. 47, s. 38; 1997, c. 85, s. 27; 2001, c. 51, s. 7; 2002, c. 40, s. 16.
35.4. Where a person or a partnership, hereinafter referred to as the “purchaser”, acquires property described in section 9, otherwise than as part of an amalgamation, from another person or partnership to whom the operator is related, hereinafter referred to as the “former owner”, the following rules apply to fiscal years ending after the acquisition of the property:
(1)  the property is deemed to have been alienated by the former owner for an amount equal to the proportion of the undepreciated capital cost of the class of property which includes the property, determined immediately before the acquisition, that the capital cost of the property to the former owner is of the aggregate of all amounts each of which is the capital cost of a property of that class;
(2)  subject to paragraphs 3, 4 and 6, the property is deemed to have been acquired by the purchaser at a capital cost equal to the amount determined under paragraph 1;
(3)  for the purposes of section 21, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner;
(4)  where the cost of the property to the purchaser exceeds the capital cost of the property to the former owner immediately before the acquisition, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner immediately before that time;
(5)  for the purposes of the definition of “undepreciated capital cost” in section 9, where the capital cost of the property to the former owner exceeds the amount determined under paragraph 1, the capital cost of the property to the purchaser is deemed to be the capital cost of the property to the former owner and the excess amount is deemed to have been allowed to the purchaser as a depreciation allowance in respect of the property for the fiscal years preceding the purchaser’s acquisition of the property;
(6)  for the purposes of section 26.0.1, where the purchaser acquired from the former owner all or substantially all of the property of the third class referred to in that section that was owned by him immediately before the acquisition,
(a)  the property is deemed to have a capital cost to the purchaser equal to the capital cost of the property to the former owner;
(b)  the property is deemed to have been acquired new by the purchaser at the same time as the property was acquired new by the former owner;
(c)  the property is deemed to have been used for the first time by the purchaser at the same time as the property was used for the first time by the former owner; and
(d)  each of the amounts allowed to the former owner as an additional depreciation allowance under subparagraph h.1 of paragraph 2 of section 8 is deemed to have been so allowed to the purchaser as a deduction.
1994, c. 47, s. 38; 1997, c. 85, s. 27; 2001, c. 51, s. 7.
35.4. Where a person or a partnership, hereinafter referred to as the “purchaser”, acquires property described in section 9, otherwise than as part of an amalgamation, from another person or partnership to whom the operator is related, hereinafter referred to as the “former owner”, the following rules apply to fiscal years ending after the acquisition of the property:
(1)  the property is deemed to have been alienated by the former owner for an amount equal to the proportion of the undepreciated capital cost of the class of property which includes the property, determined immediately before the acquisition, that the capital cost of the property to the former owner is of the aggregate of all amounts each of which is the capital cost of a property of that class;
(2)  subject to paragraphs 3, 4 and 6, the property is deemed to have been acquired by the purchaser at a capital cost equal to the amount determined under paragraph 1;
(3)  for the purposes of section 21, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner;
(4)  where the cost of the property to the purchaser exceeds the capital cost of the property to the former owner immediately before the acquisition, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner immediately before that time;
(5)  for the purposes of the definition of “undepreciated capital cost” in section 9, where the capital cost of the property to the former owner exceeds the amount determined under paragraph 1, the capital cost of the property to the purchaser is deemed to be the capital cost of the property to the former owner and the excess amount is deemed to have been allowed to the purchaser as a depreciation allowance in respect of the property for the fiscal years preceding the purchaser’s acquisition of the property;
(6)  for the purposes of section 26.0.1 where the purchaser acquired from the former owner all or substantially all of the processing assets owned by him immediately before the acquisition,
(a)  the property is deemed to have a capital cost to the purchaser equal to the capital cost of the property to the former owner;
(b)  the property is deemed to have been acquired new by the purchaser at the same time as the property was acquired new by the former owner;
(c)  the property is deemed to have been used for the first time by the purchaser at the same time as the property was used for the first time by the former owner; and
(d)  each of the amounts allowed to the former owner as an additional depreciation allowance under subparagraph h.1 of paragraph 2 of section 8 is deemed to have been so allowed to the purchaser as a deduction.
1994, c. 47, s. 38; 1997, c. 85, s. 27.
35.4. Where an operator, hereinafter referred to as the “purchaser”, acquires property described in section 9, otherwise than as part of an amalgamation, from another operator to whom he is related, hereinafter referred to as the “former owner”, the following rules apply to fiscal years ending after the acquisition of the property:
(1)  the property is deemed to have been alienated by the former owner for an amount equal to the proportion of the undepreciated capital cost of the class of property which includes the property, determined immediately before the acquisition, that the capital cost of the property to the former owner is of the aggregate of all amounts each of which is the capital cost of a property of that class;
(2)  subject to paragraphs 3 and 4, the property is deemed to have been acquired by the purchaser at a capital cost equal to the amount determined under paragraph 1;
(3)  for the purposes of section 21, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner;
(4)  where the cost of the property to the purchaser exceeds the capital cost of the property to the former owner immediately before the acquisition, the capital cost of the property to the purchaser is deemed to be equal to the capital cost of the property to the former owner immediately before that time;
(5)  for the purposes of the definition of “undepreciated capital cost” in section 9, where the capital cost of the property to the former owner exceeds the amount determined under paragraph 1, the capital cost of the property to the purchaser is deemed to be the capital cost of the property to the former owner and the excess amount is deemed to have been allowed to the purchaser as a depreciation allowance in respect of the property for the fiscal years preceding the purchaser’s acquisition of the property.
1994, c. 47, s. 38.
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