Quèbec District OfficeRulings Directorate Richard Cloutier Mining Tax Specialist (East)
Quèbec Mining Tax Credits Paragraph 12(1)(x) of the Income Tax Act (the "Act") This is further to our memorandum of December 3, 1992 concerning credits under the Quèbec Mining Duties Act (the "QMDA").
We have completed our review of this matter and we are now of the opinion that credits under the QMDA do not fall within the ambit of paragraph 12(1)(x) of the Act.
As you are aware, as part of this review, the views of the Department of Finance as well as those of the Department of Justice were sought. The Department of Finance indicated that, in their view, the credits under the QMDA do not constitute an inducement under subparagraph 12(1)(x)(iii) of the Act nor a reimbursement, contribution, allowance or assistance under subparagraph 12(1)(x)(iv) thereof. Finance also indicated that there was no intention that such credits should fall within the ambit of paragraph 12(1)(x) of the Act.
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We are sending a letter to XXXXXXXXXX to notify them of our position concerning the credits under the QMDA.
If you have any questions or wish to discuss this matter further, please contact the writer.
A/Chief Resource Industries Section Manufacturing Industries, Partnerships and Trusts DivisionRulings Directorate