Mining Tax Return - Form # 0609

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Ministry of Finance
Client Accounts and Services Branch
Mining Tax Section
PO Box 622
Oshawa ON L1H 8H5 / Mining Tax Return
Pursuant to the Mining Tax Act
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MT1 en français
Identification

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Name of operator (If a corporation include full name.)
Address of head office
Mailing address (if different from above). Include postal code.
Name(s) and location(s) of mine(s)
Mining Tax Account number
Taxation year end (YY MM DD)
Corporations Tax Account number (if a corporation)
Canada Revenue Agency Business Number
Phone number (include area code)

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Location of books and records / Name and phone number of person to contact
Tax Payable / Dollars only
Total taxable profit from non-remote mines / From page 2, Line 280 / X10% / ...... =
Taxable profit from remote mines / From page 2, Line 280 / X 5% / ...... =
Total tax payable / ...... =
Subtract payments / ...... = −
Balance / ...... =
If payment due, send with the Balance of Tax Payable Remittance for Mining Tax form to the Oshawa address shown above.
Make your cheque (drawn on a Canadian financial institution) or money order, in Canadian funds payable to the Minister of Finance and print your Mining Tax Account Number on the back of the cheque or money order. / If overpayment, (√ )
Refund
Apply to subsequent year
Certification
I hereby certify that this return, including accompanying schedules and statements has been examined by me, and is a true, correct and complete return, and that the information is in agreement with the books and records of the operator. I further certify that the method of computing profit for this taxation year is consistent with that of the previous taxation year, except as specifically disclosed in a statement attached. / Name / Title
Full residence address
Authorized signature / Date
Operator / Mining Tax Account number / Taxation year end
(YY MM DD)
Taxable Profit Calculations [S. 3(5), 3(8)] / Dollars only
Complete column B only if mining operations include a remote mine. If more than one remote mine exists, calculate the amount for lines 200 to 252 for each remote mine on a separate form and include the total for all remote mines in column B. / A
Non-remote mines / B
Remote mines
Total proceeds From page 4 / 200
Less allowable deductions:
Mining expenses [3(5)(b)] / 201
Processing Expenses [S. 3(5)(b), (c), (d), (e), (i) and (j), S. 3(12)(a) and S. 3.1(3)(a)] / 202
Operating or maintenance expenses re social assets in Ontario [S. 3(5)(c)] (excluding assets for a specified uranium undertaking) / 203
Administrative and overhead expenses [S. 3(5)(d)] / 204
Scientific/Product use development research conducted in Canada [S. 3(5)(e)] / 205
Allowance for depreciation:
Mining assets [S. 3(12)(b)] From page 6 / 206
Processing and transportation assets [S. 3(12)(a)] From page 7 / 207
Transportation expenses and outlays re delivery of output to purchasers [S. 3(5)(i)] / 208
Other reserves and deductions as prescribed by Regulation [S. 3(5)(j)] / 209
Donations (charitable, educational or benevolent) [S. 3(5)(f)] / 210
Exploration and development expenditures incurred in Ontario [S. 3(5)(g)] From page 5 / 211
Reduction in processing costs per S. 3(21)(a) & (b) (Attach calculation) / 212
Total Expenses (201 to 212) / 220
Subtotal (200 - 220) / 230
Add recaptured depreciation:
Mining assets / 231
Processing and transportation assets / 232
Profit before processing allowance (230 + 231 + 232) To page 8 / 240
Less: Processing allowance [S. 3(5)(k)] From page 8 / 241
Subtotal (240 – 241) / 250
Exemption for new mines and major expansions other than remote mines
Attach calculation on a separate form - See Guide / 251
Exemption for remote mines [S. 3.2(4)] Attach calculation on a separate form - see Guide / 252
Subtotal (250 – 251 – 252) / 260
Less: Non-remote mine loss [S. 3(7) & S. 3(10)]
(If line 260 of column A is a loss, line 260 x 10%/5%) / 261
Less: Remote mine loss [S. 3(5)(l) & S. 3(6)]
(If line 260 of column B is a loss, line 260 x 5%/10%) / 262
Profit subject to Mining Tax (260 - 261) and (260 - 262) / 270
Less: Applicable portion of $500,000 Annual Exempt Profit Deduction From page 3 / 271
Taxable profit subject to Mining Tax (270 – 271) To page 1 / 280
Operator / Mining Tax Account number / Taxation year end
(YY MM DD)
$500,000 Annual Exempt Profit Deduction / Dollars only
Each associated group of mine operators is eligible for an annual exempt profit deduction of $500,000. The exempt profit deduction is prorated for short taxation years and may be reduced further where a mine operator has a partial interest in a mine or where the operator ceases production in the taxation year for a period exceeding 60 days.
If your mining operations include a remote mine(s), calculate separately your profits from remote and non-remote mines on page 2 and prorate the annual exempt profit deduction between the two categories of mines using the formulae in E and F below.
An operator's total Annual Exempt Profit Deduction is the lesser of the following amounts:
1 / Short taxation year [s.3(2)(a)]
$500,000 X / No. of days in taxation year / ...... / = / A
365
2 / Part year production and part interest: [S. 3(2)(b), 3(3), 3(4)]
Mine 1
$500,000 X / No. of production days* in taxation year / X / %
Operator’s interest / = / (i)
365
Mine 2
$500,000 X / No. of production days* in taxation year / X / %
Operator’s interest / = / (ii)
365
Other mines - Attach list / (iii)
Sum of (i) + (ii) + (iii) ...... / = / ► / ...... / B
* Note: if a mine is out of production for less than 60 consecutive days in a taxation year enter 365.
3 / Associated Corporations
Name of Associated Operators
(if insufficient space, attach schedule) / Mining Tax Account number / Taxation year end
(YY MM DD) / Exemption profit claimed
Total
▼
$500,000 – / = / C
Annual Exempt Profit Deduction (lesser of A, B and C) To page 2, Line 271** / = / D
** Note: Enter amount D in the applicable column on page 2, Line 271 unless you are an operator with profits from both remote and non-remote mines. Mine operators with profits from remote and non-remote mines must apportion amount D to each type of mine using the formulae below.
Remote mine
profit deduction / Lesser of A, B and C / X / Mining profits from remote mines / ...... / = / E
Mining profits from all mines / To page 2, line 271,
column B
Non-remote mine
profit deduction / Lesser of A, B and C / X / Mining profits from remote mines / ...... / = / F
Mining profits from all mines / To page 2, line 271,
column A
Operator / Mining Tax Account number / Taxation year end
(YY MM DD)
Determination of Proceeds / Dollars only
Non-remote mines Remote mines
Use this schedule to compute the proceeds from non-remote mines and remote mines by checking the applicable box above.
Include only the proceeds in respect of each category of mines during the taxation year
$ Mine output
Quantity
(by weights and units) / Commodity / Product &
bi-product / Hedging, future & forward Sales / Others / Total proceeds
Totals
To page 2, Line 200

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Operator / Mining Tax Account number / Taxation year end (YY MM DD)
Exploration and Development Expenditures (E & D) Incurred in Ontario [S. 3(13)] / Dollars only
Non-remote mines Remote mines
Use this schedule to compute the deduction for non-remote mines and remote mines by checking the applicable box above. Include only E & D expenditures incurred in respect of each category of mines during the taxation year. For remote mines, include only E & D expenditures that were incurred for the purpose of bringing an Ontario mine into production or in developing a mine 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 [S. 3(8) 1)]. / Claim up to 100% of E & D incurred in Ontario not previously deducted. These expenditures must be reduced by the following:
§ eligible exploration expenses under the Ontario Mineral Exploration Program Act [S. 3(13)(d)];
§ any assistance or benefit from a government, municipality, or other public authority, including a grant, subsidy, forgivable loan, etc. [S. 3(13)(e)]; and
§ renounced expenditures in favour of another person [S.3(13)(f)].
Add Expenditures
Year of expenditures / $
Unclaimed balance
beginning of year / $
Incurred by
the Operator / $
Renounced in favour
of the Operator / $
Less:
non- deductible
amounts
(see above) / $
Allowable
expenditures / $
Amount claimed / $
Unclaimed balance
end of year
Totals
To page 2, Line 211
Operator / Mining Tax Account number / Taxation year end (YY MM DD)
Allowance for Depreciation Mining Assets / Dollars only
Non-remote mines Remote mines
Use this schedule to compute the deduction for non-remote mines and remote mines by checking the applicable box above. Include only the cost of depreciable assets reasonably related to each category of mines during the taxation year [S. 3(12.1)].
Applies to:
1. Assets used for a new mine or a major expansion of an existing mine acquired at arm’s length after March 7, 1978 and before the project is completed [(S. 3(12)(c)].
§ claim an allowance as calculated under 3(12)(b), or
§ up to 100% of the UCC of the assets provided that it does not exceed the operator’s profit for the taxation year from the new mine or major expansion (attach calculation). / 2. Other Mining Assets [3(12)(b)]. For mining assets acquired in each taxation year after April 9, 1974, in the year or a prior year, claim up to the lesser of :
a. 30% of the original capital cost for mining assets not previously used in mining operations (15% for other mining assets), and
b. UCC subject to Allowance (amount E below).
Allowance Claimed (G below) must:
§ be prorated for short taxation years [S. 3(12)(d)];
§ be the maximum allowed at basic rates and prorated for the exempt period for assets applicable to an eligible mine, if claiming the Mining Tax Exemption [S. 3.1(3) and (5)] (attach a separate calculation); and
§ be the maximum allowed for remote mines computed without reference to depreciation for new mines and major expansions [S.3(8)2 and 4].
Year of expenditures / A
$
Original
capital cost 1 / B
$
U CC
beginning of year / C
$
Cost of
additions 2 / D
$
Less disposals (lesser of cost or proceeds) / E
$
UCC subject
to allowance / F
%
Depreciation
rate / G
$
Allowance
claimed / H
$
UCC
end of year
Totals
1 Original Capital Cost - A refers to the cost of acquisition net of original cost of asset disposed of and reductions of capital cost for ITCs and government assistance under S. 3(14).
2 Cost of Additions - C refers to cost of acquisitions net of reductions for ITCs and government assistance [S. 3(14)]. / To page 2, Line 206
Operator / Mining Tax Account number / Taxation year end (YY MM DD)
Allowance for Depreciation Processing and Transportation Assets / Dollars only
Non-remote mines Remote mines
Use this schedule to compute the deduction for non-remote mines and remote mines by checking the applicable box above. Include only the cost of depreciable assets reasonably related to each category of mines in the year [S. 3(12.1)].
Applies to assets used for processing and transporting processed mineral substances to market from the point at which processing is completed. For assets acquired in each taxation year after April 10, 1974 claim an allowance for depreciation consisting of the lesser of:
§ 15% of the original capital cost of the processing and transportation assets; and
§ the UCC subject to Allowance (amount E below). / The allowance claimed (G) must:
§ not exceed the apportioned amount calculated under S. 3(12)(e)(i) and (ii) for assets situated or used outside Canada (attach calculation);
§ not exceed the apportioned amount calculated under S. 3(21)(a) and (b) for processed mineral substance mined, or processing assets located, in Canada outside Ontario(attach calculation);
§ be prorated for a short taxation year [S. 3(12)(d)]; and
§ be the maximum allowed at basic rates for remote mines and eligible mines and, if claiming the Mining Tax Exemption, prorated for the exempt period for assets applicable to an eligible mine
[S. 3.1(3) and (5) and 3(8)4] (attach separate calculation).
Year acquired / A
$
Original
capital cost 1 / B
$
U CC
beginning of year / C
$
Cost of
additions 2 / D
$
Less disposals (lesser of cost or proceeds) / E
$
UCC subject
to allowance / F
%
Depreciation
rate / G
$
Allowance
claimed / H
$
UCC
end of year
Totals
1 Original Capital Cost - A refers to the cost of acquisition net of original cost of asset disposed of and reductions of capital cost for ITCs and government assistance under S. 3(14).
2 Cost of Additions - C refers to cost of acquisitions net of reductions for ITCs and government assistance [S. 3(14)]. / To page 2, Line 207
Operator / Mining Tax Account number / Taxation year end (YY MM DD)
Determination of Processing Allowances / Dollars only
Non-remote mines Remote mines
Use this schedule to compute the deduction for non-remote mines and remote mines by checking the applicable box above. Include only the cost of processing assets used for each category of mines.
The processing allowance applies to processing assets as constructed only to the extent that they remain in use after construction. Allowance is suspended on processing assets that are not fully completed within eight years after the date of commencement of construction. Allowance claimed on assets as constructed, but not in use must be supported by a progress report showing work done and monies expended on the assets during the taxation year [S. 9(3) and (4) of Reg. 769]. / The minimum and maximum allowance is neither less than 15% nor more than 65% of profit before processing allowance from the applicable column on page 2, Line 240.
Where an operator’s mining operations includes a remote mine, the cost of processing assets must be classified as either remote or non-remote based on their use. The processing allowance for the year in respect of a remote mine is to be computed separately on this form based on processing assets used for the remote mine (including those reclassified from non-remote mines) as if the mine operator had no interest in any mine other than the remote mine during the taxation year [S. 3(8)].
I
Concentrators
in Canada / II
Concentrators
and smelters
in Canada / III
Concentrators, smelters and refineries in
Northern Ontario / IV
Concentrators, smelters and refineries in Canada but not in Northern Ontario / V
Further processing
(semi-fabricating plant) in Northern Ontario / Totals
Rates / A / 8% / 12% / 20% / 16% / 20%
Capital cost of assets in use at the beginning of year / B
Add cost of additions and assets put back into use / C
Subtotal / D
Deduct cost of disposals and assets taken out of use / E
Capital cost of assets in use at the end of year / F
Allowance before deduction (A X F) / G
Allowance reduction:
Value of output shipped outside Canada / H
Total value of output at the stage / I
Amount of reduction [ (H ÷ I) X G ] / J
Net allowance per asset basis (G – J) / K
Minimum allowance / L / 15% X / Profit before processing allowance from page 2, Line 240 ► / ...... / =
Maximum allowance / M / 65% X / Profit before processing allowance from page 2, Line 240 ► / ...... / =
Allowance
Claim K except where:
1. K is less than L, claim L or
2. K is greater than M, claim M / ......
To page 2, Line 241*
* Note: the processing allowance on line 241 is reduced further if (a) less than 80% of the value of the input to the operator’s Ontario processing plant is from mineral substances mined in Ontario or outside Canada, or (b) if the processing plant is located in Canada but outside Ontario [S. 9(8) and (9) of Reg. 769].