G.D. Tapp (613) 593-6201 OCT 31 1980
Dear Sirs:
This is in reply to your letter dated June 10, 1980 in respect of designated overburden removal costs, within the meaning of subsection 1104(2) of the Income Tax Regulations.
In our view, overburden for the purposes of subsection 1104(2) of the Income Tax Regulations (Designated Overburden Removal Cost) includes overlying material that is adjacent to the perimeter of a mineral deposit, provided its removal is necessary in order to maintain the walls of the pit or its removal is otherwise essential in the extraction of the subject mineral from an open pit mine.
We trust that the above comments are of assistance to you.
Yours truly,
for Director Specialty Corporations Rulings Division Corporate Rulings Directorate Legislation Branch