Section 65

Table of Contents


Canterra Energy Ltd. v. The Queen, 85 DTC 5245, [1985] 1 CTC 329 (FCTD), rev'd 87 DTC 5019, [1987] 1 CTC 89 (FCA)

The word "minus" in Regulation 1207(2)(a)(ii) was used in its non-technical sense of excluding something rather than in its algebraic sense. It accordingly was found that the amount in that provision could not be a negative quantity.

Cominco Ltd. v. The Queen, 84 DTC 6535, [1984] CTC 548 (FCTD)

Business interruption insurance "proceeds simply did not arise out of the production of ... metal or industrial minerals 'or from the processing in Canada of ores from a mineral resource'" within the ordinary meaning of a predecessor provision to regulation 1204(1)(b).

Administrative Policy

29 November 2012 Internal T.I. 2012-0462361I7 - Meaning of "Prime Metal Stage or its Equivalent"

CRA defines "prime metal stage or its equivalent" in accordance with Canada Pacific Ltd v. Canada, 1994 F.C.J. 993 (FCA), followed in The Queen v. Gulf Canada Resources Ltd., 96 DTC 6065 (FCA), as when "metallurgical and thermal coal has been processed to the condition in which it meets the specifications of its consumers and they buy and take delivery of it as coal in that condition." CRA also stated:

When asked about a specific mineral resource we often consult with Natural Resources Canada in order to determine the prime metal stage or its equivalent for that particular mineral resource. However, our general position is that the prime metal stage or its equivalent is met when the mineral resource has reached a stage at which it is marketable and saleable to another party.