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Income Tax Regulations

Version of the schedule from 2004-08-31 to 2019-06-20:


SCHEDULE V(Sections 1100, 1101 and 1104)Capital Cost Allowances, Industrial Mineral Mines

  • 1 For the purposes of paragraph 1100(1)(g), the amount that may be deducted in computing the income of a taxpayer for a taxation year in respect of a property described in that paragraph that is an industrial mineral mine or a right to remove industrial minerals from an industrial mineral mine is the lesser of

    • (a) an amount computed on the basis of a rate (computed under section 2 or 3 of this Schedule, as the case may be) per unit of mineral mined in the taxation year; and

    • (b) the undepreciated capital cost to the taxpayer as of the end of the taxation year (before making any deduction under section 1100) of the mine or right.

  • 2 Where the taxpayer has not been granted an allowance in respect of the mine or right for a previous taxation year, the rate for a taxation year is an amount determined by dividing the capital cost of the mine or right to the taxpayer minus the residual value, if any, by

    • (a) in any case where the taxpayer has acquired a right to remove only a specified number of units, the specified number of units of material that he acquired a right to remove; and

    • (b) in any other case, the number of units of commercially mineable material estimated as being in the mine when the mine or right was acquired.

  • 3 Where the taxpayer has been granted an allowance in respect of the mine or right in a previous taxation year, the rate for the taxation year is

    • (a) where paragraph (b) does not apply, the rate employed to determine the allowance for the most recent year for which an allowance was granted; and

    • (b) where it has been established that the number of units of material remaining to be mined in the previous taxation year was in fact different from the quantity that was employed in determining the rate for the previous year referred to in paragraph (a), or where it has been established that the capital cost of the mine or right is substantially different from the amount that was employed in determining the rate for that previous year, a rate determined by dividing the undepreciated capital cost to the taxpayer of the mine or right as of the commencement of the year minus the residual value, if any, by

      • (i) in any case where the taxpayer has acquired a right to remove only a specified number of units, the number of units of commercially mineable material that, at the commencement of the year, he had a right to remove, and

      • (ii) in any other case, the number of units of commercially mineable material estimated as remaining in the mine at the commencement of the year.

  • 4 In lieu of the aggregate of deductions otherwise allowable under this Schedule, a taxpayer may elect that the deduction for the taxation year be the lesser of

    • (a) $100; and

    • (b) the amount received by him in the taxation year from the sale of mineral.

  • 5 In this Schedule, residual value means the estimated value of the property if all commercially mineable material were removed.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/86-1092, s. 23(F)

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