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Newfoundland and Labrador
Regulation 2015


NEWFOUNDLAND AND LABRADOR REGULATION 100/15

NEWFOUNDLAND AND LABRADOR
REGULATION 100/15

Revenue Administration Regulations (Amendment)
under the
Revenue Administration Act
(O.C. 2015-262)

(Filed November 3, 2015)

Under the authority of sections 107, 110 and 113 of the Revenue Administration Act, the Lieutenant-Governor in Council makes the following regulations.

Dated at St. John’s, November 2, 2015.

Julia Mullaley
Clerk of the Executive Council

REGULATIONS

Analysis


        1.   S.2 Amdt.
Interpretation

        2.   S.60 Amdt.
Depreciation expenses

        3.   S.61 R&S
Processing allowance

        4.   S.61.1 Added
Operating expenses

        5.   Commencement


NLR 73/11
as amended

        1. Subsection 2(1) of the Revenue Administration Regulations is amended by adding immediately after paragraph (dd) the following:

       (dd.1)  "ore" means a mixture of ore minerals and gangue;

 

        2. (1) Subsection 60(1.1) of the regulations is repealed and the following substituted:

         (1.1)  For the purpose of subsection (1), where an asset used in mining operations, processing or smelting 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)  Section 60 of the regulations is amended by adding immediately after subsection (1.1) the following:

         (1.2)  Where an asset referred to in subsection (1) is used to mine, process or smelt both ore originating inside and outside the province, the depreciation expense referred to in subsection (1) shall be reduced by the proportion that the asset is used by a taxpayer in processing or smelting ore from outside the province as compared to the total use of the asset during a year.

 

        3. Section 61 of the regulations is repealed and the following substituted:

Processing allowance

      61. (1) For the purpose of subsection 82(3) of the Act, an operator may deduct an amount by way of return on capital directly and necessarily employed by the taxpayer in processing equal to

             (a)  8% of the original cost of processing assets permanently located in the province, exclusive of interest or financing charges; and

             (b)  15% of the original cost of smelting assets permanently located in the province, exclusive of interest or financing charges.

             (2)  For the purpose of subsection (1), where a processing asset or smelting asset referred to in that subsection is also used in other activities, the processing allowance referred to in subsection (1) shall be reduced by the proportion that the asset is used on those other activities as compared to the total use of the asset during the year.

             (3)  For the purpose of subsection (1) where a processing asset or smelting asset referred to in that subsection is used to process or smelt both ore originating inside and outside the province, the processing allowance referred to in subsection (1) shall be reduced by the proportion that the asset is used by a taxpayer in processing or smelting ore from outside the province as compared to the total use of the asset during a year.

 

        4. The regulations are amended by adding immediately after section 61 the following:

Operating expenses

   61.1 (1) In accordance with section 82 of the Act, expenses and outlays directly attributable to and reasonably incurred in mining operations and in processing and smelting shall be prorated in accordance with subsections (2) and (3).

             (2)  Where mining operations, processing or smelting activity by a taxpayer occurs in combination with other activities, the operating expenses referred to in subsection (1) and section 82 of the Act shall be reduced by the proportion of those other activities as compared to the total of all activities directly attributable to and reasonably incurred in mining operations, processing or smelting activity by a taxpayer in a year.

             (3)  Where mining operations, processing or smelting activity by a taxpayer relates to ore originating both inside and outside the province, the operating expenses referred to in subsection (1) and section 82 of the Act shall be reduced by the proportion that the taxpayer processes or smelts ore from outside the province as compared to the total ore processed or smelted in the province by a taxpayer during the year.

Commencement

        5. These regulations are considered to have come into force on February 19, 2014.