Principal Issues: (1) Whether a prospector is required to declare the shares received on a transfer of mining property to which section 35 applies before they are sold; (2) If so, how the receipt of shares is declared; and (3) Whether there are any prescribed forms for the declaration of the shares received.
Position: (1) No; (2) Not applicable; and (3) No.
Reasons: (1) There is no provision in the Income Tax Act or the Income Tax Regulations that requires the declaration of shares received on a transfer of mining property to which section 35 applies; (2) Not applicable; and (3) There is no prescribed form. Nevertheless, taxpayers are required by subsection 230(1) of the Act to maintain books and records in such form and containing such information as will enable the taxes payable under the Act to be determined.