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.
| |
October 5, 1989 |
| TO - Special Audits Division |
FROM - Resource Industries |
| E.H. Gauthier |
Section |
| Director |
G.R. White |
| |
957-8585 |
| Attention: Shaukat Lakhani |
| |
File No. 7-4261 |
SUBJECT: Position Paper on the Taxation of Placer Mining Industry
We are writing in reply to your memorandum of August 18, 1989, requesting that we review the above-captioned paper and provide you with our comments thereon.
After a preliminary review of the paper, we noted a number of audit guidelines contained therein for which we express no opinion on herein. Our comments which are limited to the technical issues which you have identified to us under the various headings in your paper are as follows:
1. Production in reasonable commercial quantities
21(1)(b)
Therefore, only expenditures incurred BEFORE a mine has achieved production in reasonable commercial quantities can qualify as CEE.
21(1)(b)
2. 21(1)(b)
As provided for in paragraph 66.1(6)(a) of the Act, any expense that may reasonably be considered to be related to a mine that has come into production in reasonable commercial quantities cannot be considered as CEE.
21(1)(b)
3. Inventory Valuation
21(1)(b)
4. Preproduction revenue
21(1)(b)
It should be stated that the Department's positions with respect to the issues discussed herein have not changed from those contained in the attached letters.
J.T. Gauvreau ChiefResource Industries SectionBilingual Services and ResourceIndustries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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