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.
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923108 |
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John Chan |
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(613) 957-8975 |
November 10, 1992
Quebec District OfficeResource Industries SectionRichard Cloutier Industry Specialist Services
Canadian Exploration Expense - Metallurgical Tests
This is in response to your enquiry concerning Rulings' views on the income tax treatment of expenses incurred on metallurgical tests, particularly whether such expenses could qualify for treatment as Canadian exploration expenses ("CEE") under subparagraphs 66.1(6)(a)(iii) and (iii.1) of the Income Tax Act.
Whether an expense qualifies for treatment as CEE pursuant to subparagraphs 66.1(6)(a)(iii) and (iii.1) is a question of fact which can only be determined after considering all of the relevant information pertaining to a particular situation.
Rulings' has previously opined, however, that the costs incurred in certain metallurgical testing activities would qualify for treatment as CEE provided that they have been incurred for the purposes specified in subparagraphs 66.1(6)(a)(iii) and (iii.1) and they do not run afoul of any of the other provisions in those paragraphs. In this regard, we are sending a copy of correspondence issued by Rulings on February 9, 1988 to Industry Studies and on February 15, 1988 to 24(1).
If we can be of any further assistance, please contact the writer.
Sr. Rulings OfficerResource Industries SectionManufacturing Industries, Partnerships and Trusts Division Rulings Directorate Attachments
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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