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Ottawa, December 21, 2004
2004-083

Minister of Finance Releases Draft Legislation Relating to Crown Charge Reimbursements and Mining Taxes

Related documents:

• Legislative Proposals to amend the Income Tax Act and another Act as a consequence
• Explanatory Notes:
  • Taxes on Income from Mining Operations
  • Reimbursement of Crown Charges

Minister of Finance Ralph Goodale today released a draft of proposed income tax legislation relating to the reimbursement of Crown charges such as Crown royalties.

The Minister invites the public and tax professionals to comment on the proposals before January 31, 2005.

The proposed legislation is further to the press release and backgrounder relating to royalty reimbursements issued on September 17, 2004, and includes an extension, to the end of February 2005, of the grace period for paying taxes resulting from the application of the proposed legislation. Today’s release includes explanatory notes as well as examples of the application of the proposed legislation.

In addition, Minister Goodale released a draft of proposed amendments to section 3900 of the Income Tax Regulations. The proposed amendments relate to the announcement in Budget 2003 to provide a deduction for provincial mining taxes to be phased in over a five-year period.

The draft legislation and explanatory notes are attached.

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