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Newfoundland and Labrador
Revenue Administration Regulations (Amendment)
(Filed October 29, 2013)
Under the authority of sections 107, 110 and 113 of the Revenue Administration Act, the Lieutenant-Governor in Council makes the following regulations.
1. Paragraph 2(1)(d) of the Revenue Administration Regulations is repealed and the following substituted:
(d) "capital cost" with respect to an asset, means
(i) the cost of the acquisition, construction or improvement of that asset, excluding interest charges and less government assistance pertaining to that asset, and
(ii) costs incurred to withdraw an asset from use or service and place it in protective storage or to keep it in reserve for future use
and for the purpose of paragraph 2(fff) of the Act, "capital cost" includes only the capital cost in respect of an asset which is eligible for depreciation under section 60;
(2) Paragraph 2(1)(z) of the regulations is repealed and the following substituted:
(z) "mining asset" means plant, machinery, equipment or structures acquired for and used in mining operations;
2. (1) Subsections 3(4) and (4.1) of the regulations are repealed and the following substituted:
(4) Notwithstanding subsection (1), for the purpose of Part VII of the Act,
(a) an operator referred to in section 80 of the Act;
(b) a person who has been issued a mining lease; and
(c) a person who receives or is due a payment referred to in subsection 85(1) of the Act
shall file an annual tax return whether or not tax is payable under the Act.
(4.1) The tax return required under subsection (4) shall be filed with the minister not later than 3 months after the close of the year for which the tax return is made, together with the payment of the tax payable, if any, less the amount of payment made under subsection (7).
(4.2) Where a person was issued a mining lease before the coming into force of subsections (4) and (4.1) but tax is not yet payable under section 80 of the Act, that person shall nevertheless file an annual tax return in accordance with those subsections.
(4.3) Notwithstanding subsection (1), a utility liable to pay tax under section 6 of the Taxation of Utilities and Cable Television Companies Act shall file an annual tax return not later than March 1 of the following year together with payment of the tax.
3. (1) Section 60 of the regulations is amended by adding immediately after subsection (1) the following:
(1.1) For the purpose of subsection (1), where an asset used in mining operations or processing is also used in other activities, the depreciation expense of that asset shall be reduced by the proportion that the asset is used in those other activities as compared to the total use of the asset during the year.
(2) Subsection 60(5) of the regulations is repealed and the following substituted:
(5) Where a mining operation ceases to be a new mining operation or a major expansion project and its class 3 assets have fully depreciated, those class 3 assets shall be reclassified as class 2 assets.
4. The regulations are amended by adding immediately after section 60 the following:
Determination of capital cost
60.1 (1) Notwithstanding paragraph 2(1)(d), where an operator's asset has been used for activities other than exploration, mining operations or processing before being used by the operator for exploration, mining operations or processing, for the purpose of determining the depreciation expenses or another allowance under this Part, the capital cost of that asset shall be the lesser of
(a) the fair market value of the asset; or
(b) the net book value of the asset.
(2) An asset referred to in subsection (1) shall be considered to have been acquired for the purpose of exploration, mining operations, or processing when it is first used for one of those purposes, and the capital cost of that asset shall then be determined in accordance with subsection (1).
5. Sections 3 and 4 of these regulations shall be considered to have come into force on February 28, 2003.