| Mr. Ron Sully | |
| Assistant Deputy Minister | |
| Mineral Policy | File No. 0-0288 |
| Energy, Mines and Resources, Canada | Allan B. Nelson |
| Room 701 | 957-8984 |
| 580 Booth Street | |
| Ottawa, Ontario | |
| K1A 0E4 |
Attention: Mr. Donald G. Schell Director Mining Tax Legislation Interpretation Division
November 2, 1989
Dear Mr. Sully:
Re: Class 28 - Major Mine Expansion
We are writing to request your opinion concerning subparagraph (a)(ii) of the Class 28 of Schedule II of the Regulations to the Act ("Class 28(a)(ii)").
Background
We have been asked to opine that a major expansion has taken place, for the purposes of Class 28(a)(ii), in the following instance:
24(1)
Analysis
Class 28(a)(ii) includes assets situated in Canada that would otherwise be included in another class that were "acquired by the taxpayer principally for the purpose of ... and each of which ... was the subject of a major expansion after November 7, 1969 whereby the greatest designed capacity, measured in tons of input of ore, of the mill that processed the ore from the mine was not less than 25 per cent greater in the year immediately following the expansion than it was in the year immediately preceeding the expansion".
In the present instance it is our view that there has been an 24(1)
Department of Finance's Comments
We referred this issue to Finance and received their comments as follows:
21(1)(b)
Queries
24(1) 21(1)(b)
If you require further information please contact the writer.
Director GeneralRulings DirectorateLegislative and IntergovernmentalAffairs Branch