24 October 1994 External T.I. 9425115 - INCOME FROM A MINE

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:

Income for the year from the mine

Position TAKEN:

	Negative cumulative Canadian development expense caused 	by the sale of an interest in the Canadian resource 	property that is part of the same mine as Class 41 	property is not presently considered to be income for 	the year from the mine.

Reasons FOR POSITION TAKEN:

XXXXXXXXXX		5-942511

Attention: XXXXXXXXXX

October 24, 1994

Dear Sirs:

Re: Income From the Mine

Further to our letter of August 29, 1994 we are writing to respond to your question regarding whether a negative cumulative Canadian development expense ("CCDE") balance would be considered as income from a mine for the purposes of paragraphs 1100(1)(y) and (ya) of the Income Tax Regulations.

In light of the Department of Finance comments on the above-noted matter, it is our view that negative CCDE, which arose as a result of the disposition of a Canadian resource property, will not qualify to be included in determining income from a mine for capital cost allowance purposes.

Yours truly,

for Director
Manufacturing Industries,
Partnerships and Trusts Division
Rulings Directorate
Policy and Legislation Branch