JAN 27 1989
Rulings Directorate Peter Mason 957-4364
SUBJECT: Mine reclamation costs
For your information, we enclose two letters sent recently to the XXXX of XXXX and XXXX
We were requested to provide opinions that mine reclamation costs would be deductible prior to the time that the reclamation work was done. We advised that based on the proposals submitted, this was not the case.
We expect this to be a recurring issue. Apparently a provincial committee or task force is being formed to pursue the deductibility of mine reclamation costs in an attempt to match the expense of mine reclamation with the income produced from the mine over the years.
We understand that Finance is aware of this initiative but at this point is waiting for an approach from the provinces.
ORIGINAL SIGNED BY
Director Bilingual Services and Resource Industries Division Rulings Directorate