{"id":907,"date":"2013-10-07T16:51:12","date_gmt":"2013-10-07T16:51:12","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=907"},"modified":"2013-10-07T16:51:12","modified_gmt":"2013-10-07T16:51:12","slug":"cra-releases-three-mining-industry-interpretations","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2013\/10\/cra-releases-three-mining-industry-interpretations\/","title":{"rendered":"CRA releases three mining industry interpretations"},"content":{"rendered":"<p>The CRA recently released three tax interpretations relating to the mining industry.<\/p>\n<ul>\n<li>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/10\/2012-0480021I7.pdf\">2012-0480021I7<\/a> (released September 18, 2013), the CRA correctly advised that the grant an option in respect of a mineral property would be considered the disposition of \u201can interest in\u201d that mineral property by the grantor. As authority, the CRA cited the Supreme Court of Canada\u2019s decision in Frobisher Limited v. Canadian Pipelines &amp; Petroleums Limited, [1960] S.C.R. 126.<\/li>\n<p><\/p>\n<li>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/10\/2011-0431031E5.pdf\">2011-0431031E5<\/a> (released September 23, 2013), the CRA advised that a Guatemalan tax computed on gross revenue would qualify as an \u201cincome or profits tax\u201d under Canada\u2019s foreign tax credit rules and foreign affiliate regulations. The income tax regime in Guatemala allows a taxpayer to annually choose whether to pay income tax on its gross revenue or net profits. The CRA said taxpayers would rarely elect to pay tax in an amount greater than the amount of tax computed on their net profits. As a result, the CRA concluded the Guatemalan tax on gross revenue should be considered as (1) \u201ctightly linked and subordinate to\u201d what would otherwise be an income or profits tax, and (2) \u201cindirectly determined by reference to\u201d a taxpayer\u2019s income or profits.<\/li>\n<p><\/p>\n<li>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/10\/2013-0474611E5.pdf\">2013-0474611E5<\/a>, the CRA confirmed that graphite deposits would qualify as a \u201cmineral resource\u201d as defined in s. 248(1). This view was based an opinion from Natural Resources Canada that graphite to be extracted from these deposits would qualify as \u201can industrial mineral contained in non-bedded deposit\u201d.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The CRA recently released three tax interpretations relating to the mining industry.<\/p>\n<ul>\n<li>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/10\/2012-0480021I7.pdf\">2012-0480021I7<\/a> (released September 18, 2013), the CRA correctly advised that the grant an option in respect of a mineral property would be considered the disposition<\/li>\n<\/ul>\n<p>&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-907","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=907"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/907\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}