Allowance for Community Consultations
Operators can deduct the allowance for community consultations when calculating their annual profit for a fiscal year that ends after March 28, 2017, for expenses incurred after that date.
The maximum amount that an operator can deduct as an allowance for community consultations for a fiscal year is equal to the balance of the operator's cumulative community consultation expenses at the end of the fiscal year.
As a rule, the balance of cumulative community consultation expenses at the end of a fiscal year is equal to 50% of expenses incurred after March 28, 2017, for community consultations for mining projects in Québec, including expenses incurred for consultations aiming to obtain exploration rights, permits or privileges, minus the amounts that the operator deducted as an allowance for community consultations in calculating the annual profit for previous fiscal years that ended after March 28, 2017.
It does not include:
- expenses incurred for community consultations undertaken to determine the existence, location, extent or quality of a mineral substance, or expenses incurred for community consultations undertaken for one of the reasons mentioned above to obtain an exploration right, licence or privilege (these expenses are exploration expenses if they are incurred after February 2015 and are included at 100% in calculating the balance of cumulative exploration expenses);
- expenses that can be attributed to a mine which has come into production in reasonable commercial quantities or to an actual or potential extension of a mine;
- amounts paid to conclude an impact and benefit agreement for a mining project, and amounts paid under such an agreement.