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Consolidated Newfoundland Regulation 1996
and Mineral Rights Tax Regulations
Under the authority of section 34 of the Mining and Mineral Rights Tax Act and the Subordinate Legislation Revision and Consolidation Act, the Lieutenant‑Governor in Council makes the following regulations.
1. Short title
2. Deduction for depreciation
3. Deduction for costs and outlays
5. Returns to be filed
6. Interest on sum due
7. Refund of overpayment
8. Interest on refund
1. These regulations may be cited as the Mining and Mineral Rights Tax Regulations.
Deduction for depreciation
2. (1) The deduction permitted for the depreciation of the cost of capital assets under paragraph 5(1)(b) of the Act shall not exceed 10% per annum of the cost of the assets.
(2) The total of the deductions in respect of a particular asset permitted under paragraph 5(1)(b) of the Act and this regulation shall not exceed the cost of that asset.
(3) Where mining operations are carried out for less than 12 months within a fiscal year, the deduction under paragraph 5(1)(b) of the Act and this regulation shall be reduced by the proportion that the number of days when mining operations were not carried out bears to 365.
Deduction for costs and outlays
3. The deduction allowed under paragraph 9(2)(b) of the Act shall be the total of all costs and outlays incurred by the taxpayer within areas of land in or upon which the taxpayer has the right
(a) to engage in mining operations; or
(b) to prospect or explore for minerals.
4. Where a person excavates a total of less than 250,000 cubic metres of quarry materials per year in mining operations and is subject to the Quarry Materials Act and liable to pay royalties under that Act, that person is exempt from the payment of all taxes imposed by the Mining and Mineral Rights Tax Act in respect of those quarry materials and is not liable for those taxes.
Returns to be filed
5. (1) A person liable for tax
(a) under section 3 or 7 of the Act, shall file an annual tax return in the form prescribed by the minister; and
(b) under section 8 of the Act, shall file an annual return in the form prescribed by the minister,
with the minister not later than 3 months after the close of the fiscal year for which the return is made, together with payment of the tax payable.
(2) In addition to or instead of returns required under subsection (1), the minister may order a person to file a return in the form, for the period and within the time that the minister may specify and the person so ordered shall file the return together with the tax payable for the period in respect of which the return is made.
Interest on sum due
6. (1) Interest shall be levied upon a sum due at the rate of 1.2% compounded per month or part of a month from the date the sum is required to be paid to the date of payment.
(2) Interest shall not be levied for a month in which the sum due is less than $100.
Refund of overpayment
7. (1) Where a person has paid to the Crown an amount which exceeds the amount required to be paid, that person may apply in writing to the minister for a refund of the overpayment.
(2) An application for refund shall be supported by the relevant facts, documentation or information that the minister may request.
(3) Upon verification of an application for refund, the minister shall pay the verified amount of overpayment to the person to whom the refund is due.
(4) A refund shall not be paid under this section where the amount of refund is less than $10.
Interest on refund
8. (1) Where the minister issues a refund under section 7, he or she shall at the same time pay interest on the amount of the refund at the rate of 0.7% compounded per month from the date the application is received to the date the refund is approved.
(2) Where the minister issues a refund of tax resulting from a review or appeal of an assessment, interest shall be paid to the taxpayer at the rate specified in subsection (1) from the date that the assessment or part of the assessment was paid to the date the refund is approved.
(3) Interest shall not be paid under this section when the amount of refund is less than $100.
9. The Mining and Mineral Rights Tax Regulations, 1976, Newfoundland Regulation 353/78, are repealed.
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