permitted allowances and deductions.
Proceeds are defined to include:
• all consideration received or
receivable from the sale of the
output of the mines; and
• gains from hedging, future sales,
and forward sales.
Deductible expenses and allowances
include:
• expenses incurred by the
operator that are attributable to the
production of output from the mines;
• operating and maintenance expenses
incurred with respect to social assets
for the mines (in excess of rents, fees,
grants, and other amounts received in
respect of those expenses);
• administrative and overhead
expenses incurred that are
attributable to the production or
sale of the output of the mines;
• scientific research conducted in
Canada or product use development
research conducted in Canada to the
extent that it is related to the output
of the mines;
• donations made for charitable,
educational, or benevolent purposes
related to mining operations in
Ontario;
• exploration and development
expenses;
• an allowance for depreciation at
prescribed rates;
• expenses and outlays incurred for
transportation of output from the
mines to purchasers;
• processing expenses; and
• a processing allowance at
prescribed rates.
No deduction or allowance is
available for:
• an amount on account of capital, or
an amount in respect of depreciation,
amortization, obsolescence, or
depletion unless expressly permitted
under the Mining Tax Act;
• interest and other financing costs;
• dividend payments;
• income or profit taxes and capital
taxes;
• royalties for the right to extract
mineral substances or for the use of
real property in connection with the
extraction of mineral substances paid
to anyone other than the government
of Canada or Ontario; or
• a government-imposed fine or
penalty.
A loss for the year cannot be carried
forward or back.
Exploration and Development
Expenditures
Exploration and development
expenditures in Ontario are added to
a pool of expenditures and available
to be claimed at a rate of 100%. This
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Provincial Mining Tax
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