Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Request for confirmation from CRA that events subsequent to the issuance of advance income tax ruling 2011-040898 would not affect the ruling and the opinion given.
Position: The subsequent events do not affect the validity of the ruling given.
Reasons: See below.
XXXXXXXXXX
2013-050716
XXXXXXXXXX, 2013
Dear XXXXXXXXXX:
Re: Supplemental Advance Income Tax Ruling
XXXXXXXXXX
We are writing in response to your email dated XXXXXXXXXX, wherein you requested an amendment to advance income tax ruling 2011-040898 (the "Ruling"), issued on XXXXXXXXXX, 2012, to XXXXXXXXXX. Unless otherwise indicated, all capitalized terms in this letter have the meaning assigned to them in the Ruling.
As a result of your request, the following amendment is made to the Ruling to include the following additional information:
"On XXXXXXXXXX, an XXXXXXXXXX accident in the XXXXXXXXXX of the XXXXXXXXXX mine, as described in XXXXXXXXXX of the Ruling, caused damage that will take several weeks to repair. To avoid disruption of operations, it will be necessary to use the C Mine Ramp and the XXXXXXXXXX Mine Access Ramp described in paragraphs 8 and 9 of the Ruling, together referred to as the "Ramp", XXXXXXXXXX. The Ramp will only be used on a temporary basis XXXXXXXXXX."
Considering the above, we hereby confirm that, subject to the conditions, limitations, qualifications and comments set out in the Ruling, as amended by this letter, the advance income tax ruling given in the Ruling will continue to be binding on the Canada Revenue Agency.
Comments
As indicated in subsection 18(1) of the Legislative Proposals relating to the Income Tax Act issued by the Department of Finance Canada on September 13, 2013, the definition of Canadian exploration expense ("CEE") in subsection 66.1(6) of the Income Tax Act is being amended to implement the transition from CEE to Canadian development expense ("CDE") for expenses incurred after March 20, 2013 for the purpose of bringing a new mine in a mineral resource in Canada (other than an oil sands mine) into production in reasonable commercial quantities. Paragraph (g) of the definition "Canadian exploration expense" is amended to ensure that only eligible pre-production mine development expenses incurred before March 21, 2013 are treated as CEE, subject to the time limits for eligible expenses incurred after March 20, 2013 that are set out in the transitional rules in new proposed paragraphs (g.3) and (g.4).
Yours truly,
XXXXXXXXXX
Manager
Resources Section
Reorganizations and Resources Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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