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Income Tax Regulations

Version of section 3900 from 2004-08-31 to 2006-09-20:

  •  (1) In computing his income for a taxation year, a taxpayer may deduct, under paragraph 20(1)(v) of the Act, an amount equal to the lesser of

    • (a) the aggregate of the taxes paid, in respect of his income derived from mining operations in a province for the year,

      • (i) to the province, and

      • (ii) to a municipality in the province in lieu of taxes on property or any interest in property (other than his residential property or any interest therein); and

    • (b) that proportion of such taxes that his income derived from mining operations in the province for the year is of his income in respect of which the taxes were so paid.

  • (2) In this section,

    income derived from mining operations

    income derived from mining operations in a province for a taxation year by a taxpayer means,

    • (a) where the taxpayer has no source of income other than mining operations, the amount that would otherwise be his income for the year if no amount had been deducted in computing his income under paragraph 20(1)(v) of the Act or paragraph 1100(1)(g) of these Regulations, and

    • (b) in any other case, the amount that would otherwise be his income for the year if no amount had been deducted in computing his income under paragraph 20(1)(v) of the Act or paragraph 1100 (1)(g) of these Regulations, minus the aggregate of

      • (i) his income for the year from all sources other than mining, processing and sale of mineral ores, minerals and products produced therefrom, and

      • (ii) an amount equal to eight per cent of the original cost to him of properties described in Schedule II used by him in the year in the processing of mineral ores, minerals or products derived therefrom or, if the amount so determined is greater than 65 per cent of the income remaining after deducting the amount determined under subparagraph (i), 65 per cent of the income so remaining or, if the amount so determined is less than 15 per cent of the income so remaining, 15 per cent of the income so remaining; (revenu tiré d’opérations minières)

    mine

    mine includes any work or undertaking in which mineral ore is extracted or produced, including a quarry; (mine)

    mineral ores

    mineral ores includes all unprocessed minerals or mineral bearing substances; (minerai)

    minerals

    minerals means minerals other than minerals obtained from a mineral resource but does not include petroleum, natural gas or related hydrocarbons; (minéraux)

    mining operations

    mining operations means the extraction or production of mineral ore from or in any mine or its transportation to or over any part of the distance to the point of egress from the mine, including processing thereof prior to or in the course of such transportation but not including any processing thereof after removal from the mine; (opérations minières)

    processing

    processing as applied to mineral ores includes all forms of beneficiation, smelting and refining, transportation and distributing but does not include any of these operations that are performed with respect to mineral ore before it is removed from the mine. (transformation)

  • (3) Nothing in this section shall be construed as allowing a taxpayer to deduct an amount in respect of taxes imposed under a statute or by-law that is not restricted to the taxation of persons engaged in mining operations.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/78-377, s. 12
  • SOR/94-686, s. 23(F)
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