Grassroots CEE
Canadian exploration expense incurred for the purpose of
determining the existence, location, extent, or quality of an oil,
gas, or mineral resource in Canada.
Gross income
A term used in many mining tax statutes referring to the sale
proceeds of a product. Gross income is the starting point for
computing the income that is subject to tax.
Gross revenue
A term used in many mining tax statutes and that refers to the
sale proceeds of a product. Gross income is the starting point
for computing the income that is subject to tax.
Hybrid surplus
See discussion on page 38.
Inter-vivos trust
A trust that takes effect during the lifetime of its creator.
Investment business
See discussion on page 40 and following.
Investment tax credit
A deduction from tax payable earned by incurring qualifying
expenses such as pre-production mining expenditures and
scientific research and experimental development expenses.
Joint venture
An undertaking carried out by two or more persons pursuant
to which assets of the business are owned directly by the
participants in the joint venture.
Large corporations tax
A federal capital tax that was previously imposed under Part I.3
of the ITA.
Limited partnership
A partnership in which one or more partners is a general partner
that manages the business of the partnership and has unlimited
liability for the debts of the partnership, and one or more
partners is a limited partner that does not manage the business
of the partnership and has limited liability for the debts of the
partnership.
Mining exploration tax creditSee discussion on page 26 and following.
Mining property
Includes any right, licence, or privilege to prospect, drill, or mine
for minerals; rental or royalty interests in a mineral resource; and
any land that derives its principal value from its mineral resource
content.
Net capital losses
The difference between allowable capital losses and taxable
capital gains realized on the disposition of capital properties.
Non-capital losses
Net operating losses from a business or a property (i.e., losses
other than net capital losses).
Non-depreciable capital
property
Capital property for which a deduction for capital cost allowance
is not permitted. Includes land (other than a resource property),
shares, and partnership interests held as an investment to
produce income.
© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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A Guide to Canadian Mining Taxation