Published | Category : Income tax - businesses
Amendments to the Mining Tax Act
The Mining Tax Act will be amended to take into account the following:
- An operator will be allowed to elect, in its mining tax return for its fiscal year ended immediately before the time at which it ceased, for an indeterminate period, all activities related to its mining operations, to calculate its profit margin for the fiscal year by replacing the amount corresponding to its annual profit by an amount corresponding to its adjusted annual profit.
- The transfer of depreciable property with no immediate tax impact between related persons will apply only where the purchaser is an operator within the meaning of the Mining Tax Act for the fiscal year in which the purchaser acquires the property.
- The proceeds of alienation of property deemed to have been alienated, where a person ceased all activities related to its mining operation, will be adjusted to allow for a transfer of the property with no immediate tax impact to a person that is related to the person and that is an operator within the meaning of the Mining Tax Act.
- An operator will no longer be required to reimburse the Minister of Revenue for expenses paid for the services of a valuator mandated by the Minister for the purpose of determining the gross value of the annual output of gemstones.
- An operator will be required to provide the facilities and equipment (other than computer equipment) enabling the valuator mandated by the Minister of Revenue to valuate the gemstones extracted from the mine.
For more information, see pages A.92 to A.98 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.