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: In which class should an industrial mineral mine be included on the CCA Schedule?
Position: None. An industrial mineral mine is not included in any class of Schedule II
Reasons: Deduction is provided under Reg. 1100(1)(g) and Schedule V to the Regulations
From: Harris, Ted
Sent: November 10, 2010 11:49 AM
To: XXXXXXXXXX
Subject: IT-492 Industrial mineral mine
XXXXXXXXXX ,
I am responding to your email message of October 28, 2010 concerning which CCA class to include the capital cost of an interest in an industrial mineral mine.
An industrial mineral mine is not included in any class of Schedule II, instead the deduction for CCA is permitted under paragraph 1100(1)(g) of the Regulations. The amount of the deduction is calculated under Schedule V. As stated in the Note under the Heading Completing Schedule 8, Column 1 - Class Number of the T2 Corporation Income Tax Guide "If a class number has not been provided in Schedule II of the Income Tax Regulations for a particular class of property, use the subsection provided in Regulation 1101."
Although the deduction is permitted under paragraph 1100(1)(g), and not Regulation 101, it seems reasonable that a similar rationale would apply. Consequently, "paragraph 1100(1)(g)" should be entered under column 1 of Schedule 8.
Ted Harris
ted.harris@cra-arc.gc.ca
Income Tax Rulings Directorate/Direction des décisions en impôt
320 Queen Street
16th Floor, Tower A
Ottawa ON K1A 0L5
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