Mining Tax Act

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Sections49

• 1Interpretation

  1 (1) In this Act, “assessment” includes a reassessment; (“cotisation”) “associated corporations” has the meaning given to that expression by section 256 of the Income Tax Act (Canada); (“sociétés associées”) “Deputy Minister” means the Deputy Minister of Finance; (“sous-ministre”) “exploration and development expenditures” means any outlay or expense made or incurred that is, (a) for the purpose of determining the existence, location, extent or quality of a mineral substance in Ontario, (b) for the purpose of bringing a mine in Ontario into production, (c) for the purpose of developing a mine in Ontario after the mine comes into production, including sinking or constructing a mine shaft, mine haulage way or similar underground work designed for continuing use, and any extension thereof, or (d) any outlay or expense referred to in clause (a), (b) or (c) made or incurred pursuant to an ag…

• 1.
• 2When taxes accrue

  2 (1) The tax payable under this Act by an operator for a taxation year shall be deemed to accrue proportionately during the taxation year. R.S.O. 1990, c. M.15, s. 2 (1). Payment of taxes (2) Every operator liable to pay tax under this Act for a taxation year shall pay the tax by monthly instalments during the taxation year with the balance of the tax, if any, payable not later than two months after the end of the taxation year. R.S.O. 1990, c. M.15, s. 2 (2). Amount of instalments (3) The amount of each monthly instalment payable under this section for the taxation year is the lesser of, (a) the amount of tax payable by the operator for the taxation year divided by the number of months commencing in the taxation year; or (b) the amount of tax payable by the operator for the taxation year ending immediately before the taxation year for which the instalment is being calculated, divided b…

• 2.
• 3Mining tax

  3 (1) Every operator is liable for and shall pay a tax for a taxation year equal to the amount calculated using the formula, [( A – B ) × C] + [(D – E) × 0.05]

• 3.
• [s3]

  in which, “A” is the amount of the operator’s profit, if any, as determined under subsection (5) for the taxation year, from all mines, other than remote mines, in which the operator has an interest, “B” is the amount calculated under subsection (1.2) for the taxation year, “C” is the tax rate for the taxation year as determined under subsection (3.1), “D” is the amount of the operator’s profit, if any, as determined under subsection (7) for the taxation year, from all remote mines in which the operator has an interest, and “E” is the amount calculated under subsection (1.3) for the taxation year. 2001, c. 23, s. 151 (1). Deemed not to be a remote mine (1.1) A remote mine for which an election is made by an operator under subsection 4 (4.1) is deemed not to be a remote mine for the purposes of determining the amount of tax payable under this Act for a taxation year before the first taxat…

• 3.1Exemption re new mine or major expansion of existing mine

  3.1 (1) An operator having an interest during a taxation year in a new mine that came into existence after the 20th day of May, 1987, or in a mine in which a major expansion occurred after the 20th day of May, 1987, may elect to exclude from profit for the taxation year an amount not exceeding the operator’s exempt amount for the taxation year for the mine, as determined under subsection (2), if the operator files or has filed a declaration and allocation for the mining tax exemption in the form approved by the Minister at the prescribed time or times. 1992, c. 4, s. 2; 1997, c. 19, s. 14 (1). Exempt amount (2) An operator’s exempt amount for a taxation year for a mine is the lesser of, (a) the operator’s profit, if any, from the new mine or from the major expansion of the existing mine, for the portion of the exempt period that is both within the taxation year and after the 30th day of …

• 3.2Exempt amount for remote mines

  3.2 (1) In this section, “exempt amount for remote mines” means, with respect to an operator, the amount determined under subsection (4) for a taxation year; (“montant exonéré au titre des mines éloignées”) “exemption limit” means, with respect to an operator’s remote mine, the amount determined under subsection (6); (“limite d’exonération”) “exempt period” means, with respect to a remote mine, the exempt period described in subsection (5). (“période d’exonération”) 2000, c. 42, s. 72. Application (2) This section applies to an operator that has an interest in a remote mine that comes into existence after May 7, 1996. 2000, c. 42, s. 72. Election by operator (3) An operator may exclude from the operator’s profit for a taxation year ending after May 7, 1996 from remote mines in which the operator has an interest an amount not exceeding the operator’s exempt amount for remote mines. 2000, …

• 4.
• 4Certification of a remote mine

  4 (1) The Minister of Northern Development, Mines and Forestry may certify a mine as a remote mine for the purposes of this Act, (a) if the mine comes into existence after May 7, 1996; (b) if there is a closure plan for the mine under Part VII of the Mining Act; and (c) if, in the opinion of the Minister of Northern Development, Mines and Forestry, there is at least 30 kilometres between the pit’s mouth of the mine and the nearest all-weather road or railway suitable to meet the transportation requirements of the mine. 2000, c. 42, s. 73; 2009, c. 33, Sched. 23, s. 2. When mine comes into existence (2) For the purposes of clause (1) (a), a mine is considered to come into existence after May 7, 1996 in either of the following circumstances: 1. No operator of the mine is entitled to receive proceeds from the output of the mine before May 8, 1996. The mine is separate and distinct geologica…

• 5.
• 5Duty to give notice of active operation

  5 (1) The operators of a mine from which any mineral substance is raised, taken or gained shall, within ten days after the commencement of active operation of the mine, give written notice to the Minister that the mine is in active operation, and such notice shall state the name and address of every operator of the mine. R.S.O. 1990, c. M.15, s. 5 (1). Notice of change (2) Every operator of a mine that is in active operation shall forthwith give written notice to the Minister of every change in the operator’s name or address and such notice shall contain an address for service of the operator where notices or demands under this Act may be given or served. R.S.O. 1990, c. M.15, s. 5 (2). Service of notice (3) Any notice or demand required or provided for by this Act shall be deemed to have been properly and sufficiently given or served on the operator if mailed by registered mail to the a…

• 6.
• 6Shipping forbidden before notice

  6 (1) No person shall ship, send, remove or carry away or permit to be shipped, sent, removed or carried away from the mine from which the same has been taken any mineral substance or any product thereof until notice has been given to the Minister as required by section 5 that the mine from which the mineral substance or product is taken is in active operation. R.S.O. 1990, c. M.15, s. 6 (1). Offence (2) Every person who contravenes subsection (1) is guilty of an offence and on conviction is liable to a fine of not more than $5,000. R.S.O. 1990, c. M.15, s. 6 (2). Functional currency reporting

• 7.
• 6.1Definition

  6.1 (1) In this section, “elected functional currency” of an operator means the currency of a country other than Canada that is the elected functional currency of the operator within the meaning of subsection 261 (1) of the Income Tax Act (Canada) for the purposes of that section. 2011, c. 9, Sched. 24, s. 4. Application of subs. (3) (2) Subsection (3) applies to an operator in respect of a particular taxation year that begins after December 31, 2010 if the following conditions are satisfied: 1. The operator’s taxation year under this Act coincides with the operator’s taxation year for the purposes of the Income Tax Act (Canada). 2. The operator has satisfied the requirements under subsection 261 (3) of the Income Tax Act (Canada) in respect of the taxation year. 3. On or before the day that is 60 days after the first day of the taxation year, i. the operator has elected that subsection …

• 8.
• 7Returns

  7 (1) On or before the last day of the month that ends six months following the close of the taxation year, every operator of a mine in Ontario shall, without notice or demand, deliver to the Minister a return containing an estimate of the tax for which the operator is liable and the return shall be verified by a certificate stating that the information included in the return is in agreement with the books required to be kept under this Act, and such certificate shall be signed by a person who has personal knowledge of the affairs of the operator and the mine, but the Minister may require the person who certified the return to verify under oath the return or any part thereof, and any person so required shall forthwith make and file with the Minister an affidavit verifying the truth of the matters and facts contained in the return. R.S.O. 1990, c. M.15, s. 7 (1). Audit and inspection (2) …

• 9.
• 10.
• 8Notice of assessment

  8 (1) The Minister shall with all due dispatch examine each return delivered under section 7 together with any other information furnished under this Act and shall assess the tax for the taxation year and the interest and penalties, if any, payable. R.S.O. 1990, c. M.15, s. 8 (1). Interest on deficiency in tax account (2) Interest at the rate prescribed by the regulations shall be calculated and charged daily and be payable by an operator on the deficiency in the operator’s tax account for a taxation year, for each day there is a deficiency in the tax account after the end of the instalment period for the taxation year. 1994, c. 18, s. 6 (8). Note: Subsection 8 (2), as re-enacted by the Statutes of Ontario, 1994, chapter 18, subsection 6 (8), applies in determining the amount of interest in respect of any day that is on or after January 1, 1998, and, for the purposes of determining the a…

• 11.
• 9Reassessment

  9 (1) The Minister may, (a) at any time, if the operator filing a return, (i) has made any misrepresentation or committed any fraud in filing the return or supplying any information under this Act, (ii) has failed to file the financial information with the return required to be filed under section 7, (iii) has been negligent in supplying any information under this Act, (iv) has filed with the Minister a waiver in the form approved by the Minister on or before the later of, (A) the expiry of a four-year period commencing on the day of mailing of the notice of an original assessment, and (B) the latest day such a waiver could be filed under this Act for any previous taxation year; or (v) has claimed a deduction described in clause 3 (15) (f) before or after the day on which that clause comes into force; and (b) in any other case, on or before the later of, (i) the expiry of a four-year per…

• [s13]

  reassess or make additional assessments, or assess a tax, interest or penalties, as the circumstances require. R.S.O. 1990, c. M.15, s. 9 (1); 1997, c. 19, s. 14 (2); 2006, c. 33, Sched. S, s. 2. Revocation of waiver (2) Where the Minister is authorized to issue an assessment under subsection (1) by reason only that the operator has filed a waiver under subclause (1) (a) (iv), the Minister may not issue an assessment later than one year after the date on which the operator has filed a notice of revocation of the waiver in the form approved by the Minister. R.S.O. 1990, c. M.15, s. 9 (2); 1997, c. 19, s. 14 (3). Pension plan withdrawals (3) Despite subsection (1), where any amount is withdrawn by an operator from an employees’ superannuation or pension fund or plan, the Minister may reassess the amount of tax payable by the operator under this Act for a maximum of ten taxation years immed…

• 12.
• 10Objections and appeals

  10 Sections 84 to 91 and 92.1 of the Corporations Tax Act apply for the purposes of this Act, and in the application thereof the following rules apply: 1. References therein to “a corporation” and “the corporation” shall be read as “an operator” and “the operator”, respectively. 2. The reference to section 80 of that Act in subsection 84 (1) and clause 84 (7) (a) shall be read as a reference to sections 8 and 9 of this Act. 3. The reference in subsection 84 (6) to “clause 80 (11) (b) or (c)” shall be deemed to be a reference to clause 9 (1) (b) of this Act. 4. Clause 84 (7) (b) is not applicable for the purposes of this Act. 5. Clause 84 (7) (d) shall be read without reference to the words “if section 92 does not apply”. 6. All references therein to sections 84, 85 and 87 of that Act, and subsections thereof as applicable, shall be deemed to be references to those sections and subsection…

• 13.
• 11Books of account

  11 (1) Every operator shall keep at or near the mine, or at such place determined under subsection (3), proper books of account showing, (a) the quantity, weight, value, composition and other particulars of the mineral substances raised, taken or gained from the mine; (b) the returns from the processing plant; (c) the proceeds from the output of the mine; (d) each of the several expenses, payments and allowances deducted pursuant to section 3; and (e) any other facts and circumstances necessary or proper for ascertaining the amount of tax imposed by this Act. R.S.O. 1990, c. M.15, s. 11 (1). Removal of mineral substances from mining premises (2) No mineral substance raised, taken or gained from any mine shall be removed from the mining premises or processed at any processing plant until the weight of the mineral substance has been ascertained and entered in the books of account required …

• 14.
• 12Entry to mine

  12 (1) Any person authorized by the Minister for any purpose related to the administration or enforcement of this Act may at all reasonable times enter upon any mine in Ontario and the operator of the mine shall, (a) permit such person to descend all pits and shafts and use all tackle, machinery, appliances and things belonging to or under the control of the operator that the person considers necessary or expedient for the purposes of carrying out his or her duties under this subsection; (b) give to such person free ingress and egress to, from and over all buildings, erections, structures and vessels used in connection with the mine and any processing plant at which mineral substance taken from the mine is processed or in any way modified; and (c) permit the person to take such samples or specimens of mineral substance as the person considers necessary for the purpose of determining thei…

• 15.
• 13Confidentiality

  13 (1) Every person employed or formerly employed directly or indirectly in the administration or enforcement of this Act or in the development and evaluation of tax policy for the Government of Ontario shall preserve secrecy with respect to all matters related to this Act that come to his or her knowledge in the course of such employment and shall not communicate any information or material related to any such matter to any other person not legally entitled thereto except, (a) as may be required in connection with the administration or enforcement of this Act or any other Act administered by the Minister or the regulations under any of them; (b) as may be required in connection with the development and evaluation of tax policy by the Government of Ontario or the Government of Canada; (c) to counsel for the person required by this section to preserve secrecy; or (d) with the consent of t…

• 16.
• 14Compromising disputes as to liability for tax

  14 If any doubt or dispute arises as to the liability of an operator to pay the tax or any portion of the tax demanded under this Act, or if owing to special circumstances it is deemed inequitable to demand payment of the whole amount imposed by this Act, the Minister may accept such amount as the Minister considers proper. R.S.O. 1990, c. M.15, s. 14.

• 17.
• 15Penalty for failure to deliver return

  15 (1) Every operator or person who fails to deliver a return for a taxation year as and when required under this Act, or fails to include in the return or deliver with the return any information or documents required to be delivered as part of or with the return, shall pay a penalty equal to 5 per cent of the amount, if any, of the deficiency in the operator’s tax account for the taxation year as of the day the return was required to be delivered, as determined under section 8 before taking into consideration the penalty being imposed under this subsection. 1994, c. 18, s. 6 (20). Note: Subsection 15 (1), as re-enacted by the Statutes of Ontario, 1994, chapter 18, subsection 6 (20), applies in respect of failure to deliver returns required to be delivered under this Act on or after January 1, 1998. See: 1994, c. 18, s. 6 (32). (2) Repealed: 1994, c. 18, s. 6 (20). (3) Repealed: 1994, c.…

• 18.
• 16Offences

  16 (1) Every operator that fails to deliver a return as and when required by this Act or the regulations is guilty of an offence and, in addition to any penalty otherwise provided, on conviction is liable to a fine of not less than $200 for each day of default. R.S.O. 1990, c. M.15, s. 16 (1). Idem (2) Every person who fails to comply with or contravenes subsection 93 (7) of the Corporations Tax Act, as made applicable by subsection 7 (2) of this Act, section 11 or subsection 12 (1), is guilty of an offence and, in addition to any penalty otherwise provided, on conviction is liable to a fine of $200 for each day during which the default or contravention continues. R.S.O. 1990, c. M.15, s. 16 (2); 2004, c. 16, Sched. D, Table. Officers of corporations (3) Sections 96 and 97 of the Corporations Tax Act apply for the purposes of this Act. R.S.O. 1990, c. M.15, s. 16 (3); 2004, c. 16, Sched.…

• 19.
• 17False statements

  17 Every person who has, (a) made, or participated in, assented to or acquiesced in the making of, false or deceptive statements in a return, certificate, statement or answer delivered or made as required by or under this Act or the regulations; (b) to evade payment of a tax imposed by this Act, destroyed, altered, mutilated, secreted or otherwise disposed of the records or books of account of an operator; (c) made, or assented to or acquiesced in the making of, false or deceptive entries, or omitted, or assented to or acquiesced in the omission, to enter a material particular, in records or books of account of an operator; (d) wilfully in any manner evaded or attempted to evade compliance with this Act or payment of taxes imposed by this Act; or (e) conspired with any person to commit an offence described by clauses (a) to (d), is guilty of an offence and, in addition to any penalty oth…

• 20.
• 18Collection

  18 (1) Sections 99, 100, 102, 103, 104, 105, and 106 of the Corporations Tax Act apply with necessary modifications for the purposes of this Act and, without limiting the generality of the foregoing, references therein to “a corporation” and “the corporation” with respect to a person liable to pay an amount under that Act shall be read as “an operator” and “the operator” for the purposes of this Act. R.S.O. 1990, c. M.15, s. 18 (1); 1994, c. 18, s. 6 (21); 2004, c. 16, Sched. D, Table. Unregistered liens discharged (2) Any property of any kind that is, by virtue of any predecessor of this section, subject to a first lien and charge that is not registered in the proper land registry office, is absolutely discharged from such unregistered first lien and charge unless, in the case of real property, in any proceeding a claim has been made or other steps taken by the Minister with respect to …

• 21.
• 19Injunction or receiver

  19 In addition to any other remedy for the recovery of any tax imposed under this Act, an injunction or an order in the nature of an injunction or the appointment of a receiver with all necessary powers, or such other relief or remedy as seems necessary or expedient for securing payment of the tax may, in any case where any tax under this Act is overdue or where the payment of any accrued or future tax seems in danger, be obtained by application to a judge of the Superior Court of Justice at the instance and in the name of the Minister to prevent the removal, transportation or transmission of any ore, mineral substance or mineral-bearing substance, or to prevent or restrict mining operations, or to provide for such operations upon such terms and conditions as the judge considers proper. R.S.O. 1990, c. M.15, s. 19; 2001, c. 23, s. 154. Section Amendments with date in force (d/m/y) 2001, …

• 22.
• 20Action to recover amounts

  20 (1) If any amount required to be paid under this Act or the reimbursement required under subsection 11 (4) is not paid when due, the same may be recovered with costs from the operator by an action to be tried without a jury at the suit of the Minister in any court of competent jurisdiction. R.S.O. 1990, c. M.15, s. 20 (1); 1994, c. 18, s. 6 (22). Action by Minister does not abate (2) Any action that may be brought under this Act may be brought by the Minister as plaintiff, and it is not necessary to name the Minister, and the action does not abate by reason of a change in the person of the Minister or by reason of the office being vacant at any time, but the action may proceed as if no change had been made or no vacancy existed. R.S.O. 1990, c. M.15, s. 20 (2). Remedies in subss. (1), (2) additional to all other remedies (3) The remedies and the rights of action provided in subsection…

• 21Regulations

  21 (1) The Lieutenant Governor in Council may make regulations, (a) prescribing rates of interest for the purposes of this Act or a formula for computing those rates and the method of calculating that interest; . . . . . (c) prescribing anything that by this Act is to be prescribed or is to be determined by the regulations; (d) defining any word or expression used in this Act or the regulations made under this Act that has not already been expressly defined in this Act; . . . . . (f) prescribing the manner of determining the profit for the taxation year of an operator who is a member of a partnership or a beneficiary of a trust where the partnership or trust is operating a mine; (g) prescribing the manner of determining and the matters to be taken into account in determining whether there is a mine project that is a new mine or a major expansion of an existing mine for the purposes of cl…

• 22Forms

  22 The Minister may approve the use of forms for any purpose of this Act and the forms may provide for such information to be furnished as the Minister may require. 1997, c. 19, c. 14 (5). Section Amendments with date in force (d/m/y) 1997, c. 19, s. 14 (5) - 10/10/1997 ______________