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B.C. Reg. 403/89
O.C. 1823/89
Deposited December 18, 1989
effective January 1, 1990
This consolidation is current to July 28, 2020.

Mineral Tax Act

Mineral Tax Transitional Regulation

[includes amendments up to B.C. Reg. 299/2002]

Contents
1Interpretation
2Mine related balances
3Allocation of balances
4Allocation of balances
5Earned depletion
6Election
Schedule

Interpretation

1   In this regulation, "Act" means the Mineral Tax Act.

Mine related balances

2   For the purposes of section 11 (1) of the Act, the amount of any expenditures included in the account balances listed in section 11 (1) (a) (i) to (vi) of the Act and not included as expenses in section 5 (2) (c) (ii) and (iii) of the Mineral Resource Tax Act1 shall be deemed to relate to the mine or mine property to which they would have related under the Mineral Resource Tax Act1.

Allocation of balances

3   For the purposes of section 11 (1) of the Act,

(a) the amount of expenses described in section 5 (2) (c) (ii) and (iii) of the Mineral Resource Tax Act1 as at June 30, 1989, for which no deduction has been claimed for the purposes of the Mineral Resource Tax Act1, and

(b) the expenditures that would have been available for deduction for purposes of the Mining Tax Act as at June 30, 1989, for which no deduction has been claimed for the purposes of the Mining Tax Act,

may be allocated by filing elections to a particular mine, or mine property from which the particular mine has been developed, provided that the mine or mine property was owned by the operator on June 30, 1989, and the allocated amounts shall be deemed to relate to the operation of the particular mine or mine property to which they are so allocated for the purposes of section 11 of the Act.

[am. B.C. Reg. 299/2002, s. (a).]

Allocation of balances

4   For the purposes of section 11 (1) of the Act,

(a) the amount of any expenses described in section 5 (2) (c) (ii) and (iii) of the Mineral Resource Tax Act1 incurred after June 30, 1989 and before the coming into force of this Act for which no deduction has been claimed for the purposes of the Mineral Resource Tax Act1, and

(b) the amount of any expenses incurred after June 30, 1989 and before coming into force of this Act that would have been available for deduction for the purposes of the Mining Tax Act for which no deduction has been claimed for the purposes of the Mining Tax Act,

may be allocated by filing elections to a particular mine or mine property from which the particular mine has been developed, provided that

(i) the expenditures were incurred directly by the operator and not by any predecessor corporation to an amalgamation or otherwise by any other operator, and

(ii) the costs were incurred at such time as the operator owned the mine or the mine property, or an interest in it, from which the mine has been developed,

and those allocated amounts shall be deemed to relate to the specific mine or mine property to which they are so allocated.

[am. B.C. Reg 299/2002, s. (a).]

Earned depletion

5   For the purposes of section 11 (3) of the Act, expenditures eligible under that subsection for earned depletion with respect to a particular mine are the aggregate of

(a) eligible expenditures described in section 5 (2) (d) (i) of the Mineral Resource Tax Act1 for that mine as at the coming into force of the Act, and

(b) eligible expenditures described in section 5 (2) (d) (ii) of the Mineral Resource Tax Act1, excluding any expenditures included in paragraph (a), to the extent that those expenditures are allocated by filing elections to the particular mine or mine property from which the particular mine has been developed and provided that

(i) the mine or mine property was owned by the operator on June 30, 1989,

(ii) the expenditures were incurred directly by the operator and not by any predecessor corporation to an amalgamation or otherwise by any other operator, and

(iii) the costs were incurred at the time the operator owned the mine or mine property, or an interest in it, from which the mine has been developed.

[am. B.C. Reg. 299/2002, s. (b).]

Election

6   (1) Where amounts are to be allocated for the purposes of sections 3, 4 and 5, the operator may elect irrevocably to allocate an amount to a particular mine in a return delivered to the commissioner on or before the last day of the sixth month following the end of the fiscal year of the mine for which the allocation is made.

(2) An election under subsection (1) in respect of a particular mine shall be made,

(a) where there is commercial production from the mine, during the first fiscal year of the mine ending after the coming into force of this Act, in a return for that year, or

(b) in any other case, in the return for a fiscal year of the mine not later than the fiscal year of the mine during which the mine commences commercial production,

and, for greater certainty, only one election may be made in respect of each mine or interest in it owned by the operator.

(3) Amounts allocated by election under this section reduce the amounts available for allocation to any other mine.

(4) For the purposes of determining the investment allowance under section 9 (2) of the Act, the amounts allocated shall be deemed to be included as prescribed costs under section 9 (1) (b) of the Act on the last day of the fiscal year of the mine for which the allocation was made.

(5) Repealed. [B.C. Reg. 299/2002, s. (c).]

[am. B.C. Regs. 348/95; 299/2002, s. (c).]

Schedule

Repealed. [B.C. Reg. 299/2002, s. (d).]

1.Act repealed by S.B.C. 1989, c. 55, section 42.

[Provisions of the Mineral Tax Act, R.S.B.C. 1996, c. 291, relevant to the enactment of this regulation: section 44]