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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Whether our response to round table question 36 at the 1991 Canadian tax conference concerning the write-down of capital assets for Part I.3 tax purposes apply equally to mining property.
Position TAKEN:
We confirm that our position as stated in the 1991 Canadian Tax conference round table will apply to mining property that is capital property.
Reasons FOR POSITION TAKEN:
Previous Ruling positions.
NATIONAL MINING MEETING
Saskatoon - October 2-5, 1994
Question
Part I.3 Tax - Write-down of Mining Property
Does our response to round table question 36 at the 1991 Canadian Tax conference Tax concerning the write-down of capital assets and the resulting impact upon the tax liability under Part I.3 of the Income Tax Act ("Act") apply equally to mining property?
Response:
We confirm that our position as described in the above-mentioned round table question applies to mining property that is capital property. As long as the decline in value is recognized for generally accepted accounting principles ("GAAP") and is other than of a temporary nature we would not consider the amount of the write-down to be a "reserve", as that term is defined in subsection 181(1) of the Act.
Gary Donell, Financial Institutions, September 16, 1994
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1994
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1994
Email this Content