Subsection 35(1) - Prospectors and grubstakers
See Also
Darke v. MNR, 76 DTC 6468, [1976] CTC 734 (FCTD)
Knowledge as to where a subsequently-formed partnership should stake claims was obtained by one of the partners while he was an employee of Texas Gulf. Accordingly the prospecting in question was done on behalf of Texas Gulf rather than on behalf of the partnership, and gains which the partnership realized from the sale of mining claims accordingly were not exempt. (S.83(2), pre-1972 Act).
Subsection 35(2) - Definitions
Prospector
Cases
The Queen v. Boychuk, 78 DTC 6316, [1978] CTC 451 (FCTD)
It was found that the taxpayer and other members of his syndicate had merely staked claims in whatever grounds they found open, in an area where other persons had made mineral finds, with a view to making a quick sale of the claims, rather than searching or exploring for minerals: "merely staking claims is not enough to constitute prospecting ... Searching or exploring for minerals is necessary."
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| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Leases and Licences | 62 |