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The Mining Tax Act
This is an unofficial archived version of The Mining Tax Act
as enacted by SM 1987-88, c. 9 on July 17, 1987.

R.S.M. 1987, c. M195

The Mining Tax Act

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions.

1(1)

In this Act

"assessment" includes a re-assessment; ("cotisation")

"book value" where used to refer to the book value of an asset, means the original cost of that asset less all depreciation charged to that asset as shown in the books of the owner of the asset for the purposes of preparing financial statements for the shareholders of the company up to the end of the fiscal year immediately preceding the fiscal year in which the book value of the asset is material; ("valeur comptable")

"court" means the Court of Queen's Bench; ("tribunal")

"dealing at arm's length" has the meaning that that expression has in the Income Tax Act (Canada); ("traiter sans lien de dépendance")

"depreciable assets" where used to refer to the depreciable assets of an operator means the assets within Manitoba of the operator resulting from

(a) the preproduction expenses incurred by the operator in respect of a mine, whether or not that mine is placed in production, placed in an available for use basis, or abandoned,

(b) the aggregate expenditures, not including any interest charges, made by the operator for the purchase and installation within Manitoba of mining buildings and equipment, whether or not the buildings and equipment are placed in production, placed in an available for use basis, or abandoned,

(c) the aggregate expenditures, not including interest charges, made by the operator for the purchase and installation within Manitoba of milling, smelting and refining buildings and equipment therein, whether or not the buildings and equipment are placed in production, placed in an available for use basis or abandoned, and

(d) all other expenditures, not including interest charges,

(i) that have been made by the operator,

(ii) that, in the opinion of the director, were made for a necessary part of the mineral processing establishment which is of a permanent nature and necessary to the continuing operation of the mineral processing establishment, and

(iii) that are shown in the books of the company as capital expenditures for the purposes of preparing financial statements for the shareholders of the operator,

but does not include any assets resulting from expenditures made for the purchase or acquisition of mining properties from another person, or in obtaining an option to purchase or acquire mining properties from another person, or any assets resulting from expenditures that were part of deductible expenses for the purposes of calculating profit under this Act or The Mining Royalty and Tax Act; ("éléments d'actif amortissables" )

"director" means the Deputy Minister of Finance or any assistant deputy minister of Finance or the Director of the Mining and Use Taxes Branch of the Department of Finance; ("directeur")

"exploration expenses" where used to refer to the exploration expenses incurred by an operator means expenses incurred by the operator for actual exploration for new mineral occurrences in the province but not including

(a) moneys expended to obtain mineral rights, mining claims or mining leases or any interest or estate therein, or to obtain any share or security of a company having mineral rights, mining claims or mining leases or any interest therein, or

(b) expenses incurred in acquiring a depreciable asset, or

(c) expenses incurred for pre-production expenses; ("frais d'exploration")

"fiscal year" means a period commencing on January 1 of any year and ending on December 31 of that year; ("exercice")

"mine" when used as a noun, means

(a) any opening or excavation in, or working of the ground for the purpose of winning any mineral bearing substances, and

(b) all ways, works, engine, machinery, plant, buildings, and premises, below or above ground belonging to, or used in connection with, the operation of mining,

but does not include any processing buildings or equipment; ("mine")

"mine" when used as a verb or in a verbal sense means the working of, disturbing, removing, washing, sifting, crushing, or otherwise dealing with, by any mode or method whatsoever, any soil, earth, rocks, stone or quartz, in the process of obtaining any mineral bearing substance therefrom, whether it has been previously disturbed or not, but does not include processing; ("exploiter" )

"mineral" means a mineral as defined in The Mines Act but does not include

(a) oil or gas, or

(b) clay, or

(c) gypsum, or

(d) clay products, or

(e) sand or gravel, or

(f) rock or stone used or intended to be used as rock or stone in building or construction, or

(g) peat; ("minéral")

"mineral processing establishment" means the mines, concentrators, smelters, refineries, crystallizers, and associated equipment and buildings, within Manitoba, which constitute the depreciable assets of an operator used for the mining, milling, smelting and refining of mineral products; ("installation de traitement du minéral")

"mineral product" means a product derived from mineral bearing substances processed in a mineral processing establishment of an operator including those mined, milled, smelted, refined, recrystallized or otherwise beneficiated to a state suitable for

(a) sale to a person with whom the operator is dealing at arms length for further processing, or

(b) fabrication by manufacturing, or

(c) acceptance by the Royal Canadian Mint; ("produit minéral")

"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; ("ministre")

"new investment credit" where used in referring to the new investment credit of an operator, means the amount calculated in respect of the operator in accordance with Formula 1 set out in the Schedule; ("crédit aux nouveaux investissements")

"operator" where used in relation to any mineral processing establishment, means the person who is the owner, lessee, tenant, holder or other occupier of the depreciable assets that constitute the mineral processing establishment, or of any part thereof, and includes every government board and agency and every Crown corporation established and administered by or on behalf of Her Majesty in right of Manitoba that owns, leases or operates a mineral processing establishment, but does not include

(a) a person who merely receives a royalty or rent from a person who actually operates and manages the mineral processing establishment, or

(b) a person who is the actual owner of a mineral processing establishment, or a part thereof, that is subject to a lease, grant or licence, to another person for the actual operation and working thereof, and who does not participate in the actual operation and working thereof, or

(c) a person who is merely the owner of the soil or surface rights of land and has no right or title to the mines or minerals therein, and who does not participate in the actual operation and working of a mineral processing establishment; ("exploitant")

"output" means the minerals and mineral products taken or gained from a mineral processing establishment; ("production")

"preproduction expenses" means the aggregate expenses and allowances of the kind described in sections 7 to 12, not including any interest charges, incurred by the operator of a mineral processing establishment in the development in Manitoba of an ore body from the date of acquiring the mine that forms part of the mineral processing establishment to the date production from the mine begins, and that are essential to the production of the output of the mine; ("dépenses engagées avant la production")

"processing" means all forms of crushing, grinding, floatation, roasting, smelting, leaching, recrystallizing and refining performed in a mill, smelter or refinery for the purpose of recovering mineral products from mineral bearing substances; ("traitement")

"processing asset" means any depreciable asset of an operator that is a building or part of a building in which only milling, smelting, recrystallizing and refining activities of the operator take place and all equipment within the building that is used solely for milling, smelting, recrystallizing and refining activities of the operator and, except where the processing plant of the operator is not in operation, includes that depreciable asset whether or not the building or part thereof or the equipment are in production, placed in an available for use basis or abandoned and also includes, in the case of an open pit mine, a primary crusher if it is located beyond the lip of the open pit but does not include any of those depreciable assets that are in or associated solely with a processing plant of the operator that is not in operation; ("élément d'actif servant au traitement")

"profit" where used to refer to the profit of an operator in a fiscal year, means the profit of that operator in that fiscal year as calculated under sections 4 to 12; ("profit")

"qualified exploration expenses" where used in section 7 means exploration expenses incurred to discover new ore bodies; ("frais d'exploration admissibles")

"tax" means the tax payable under this Act; ("taxe")

"undepreciated balance" where used to refer to the undepreciated balance of depreciable assets of an operator at the end of a fiscal year, means the amount obtained by deducting from the total of the original cost, not including any interest charges, incurred by the operator in acquiring the depreciable assets prior to the end of that fiscal year,

(a) all depreciation claimed and allowed under The Mining Royalty and Tax Act prior to January 1, 1975,

(b) all depreciation claimed and allowed under this Act after December 31, 1974 and prior to the end of that fiscal year,

(c) proceeds from the sale or disposal of any depreciable assets received or receivable prior to the end of that fiscal year or the original cost of the depreciable assets sold or disposed of prior to the end of that fiscal year, whichever is the lesser; and

(d) all amounts deducted by the operator under subsection 13(2) from the tax payable for any previous fiscal year. ("solde non amorti")

Date of calculation of revenues.

1(2)

For the purposes of this Act, but subject to subsection 47(2), the revenue of an operator shall be calculated as follows:

(a) all revenue from the sale or disposal of mineral products to another person shall be calculated as revenue as of the date of delivery of the mineral products to the person to whom they are sold or disposed of;

(b) all revenue from custom processing of mineral bearing substances or mineral products shall be calculated as revenue as of the date each stage of the custom processing is completed;

(c) all revenue from custom mining with respect to which expenses are deducted under subsection 7(1).

Joint ventures.

1(3)

Where the members of a partnership, syndicate or any other group of persons are jointly or individually the owners, lessees, tenants, holders or occupiers of a mineral processing establishment as a joint venture, each member of the partnership, syndicate or group of persons engaged in the joint venture is deemed to be an operator of the mineral processing establishment, and not to be dealing at arms length with the other members of the joint venture.

Where assets partly within and partly outside the province.

2

Where the mine of a mineral processing establishment is situated partly within and partly outside the province, the whole of the mine and all of the assets of the operator of the mineral processing establishment, whether within or outside the province,

(a) that are used and operated by the operator in connection with the mine; and

(b) that are within the province, or, where situated outside the province, are within 50 miles of the boundary of the province, and that if they were situated within the province would be depreciable assets of the operator;

shall for the purposes of this Act be conclusively deemed to be depreciable assets of the operator.

Non-arm's length disposal of depreciable assets.

3(1)

Where an operator sells or disposes of a depreciable asset to a person with whom he is not dealing at arm's length, the price received for the sale or disposal of the asset shall, for all purposes under this Act, be conclusively deemed to be the undepreciated balance of that asset.

Non-arm's length acquisition of depreciable assets.

3(2)

Where an operator acquires a depreciable asset from a person with whom he is not dealing at arm's length, the price paid for the acquisition of the asset shall, for all purposes under this Act, be conclusively deemed to be the lesser of the undepreciated balance or the book value of that asset as shown in the books of the person from whom the asset was acquired and for the purpose of calculating an allowance for processing under subsections 10(3), (4) and (6) that price shall be conclusively deemed to be the original cost of the asset.

Removal of depreciable asset.

3(3)

Where an operator removes from Manitoba a depreciable asset, and does not sell or dispose of it, the depreciable asset shall be conclusively deemed to have been sold by the operator at the undepreciated balance of that asset.

Bringing depreciable asset into Manitoba.

3(4)

Where an operator brings into Manitoba a depreciable asset that has been previously used by the operator outside Manitoba, or that has been previously removed by the operator from Manitoba, the depreciable asset shall be conclusively deemed to have been purchased by the operator at the lesser of the undepreciated balance or the book value of that asset and for the purpose of calculating an allowance for processing under subsections 10(3), (4) and (6), that price shall be conclusively deemed to be the original cost of the asset.

Calculation of undepreciated balance.

3(5)

For the purposes of this section, the undepreciated balance means the undepreciated balance as defined in subsection 1(1) less any allowance for depreciation that has been claimed or could be claimed by the operator under the mining tax or royalty Act of any other jurisdiction.

Calculation of profit.

4

The profit of an operator in a fiscal year shall be calculated in accordance with Formula 2 set out in the Schedule but where in the application of that Formula, the amount represented by E is greater than the amount represented by R, the profit for the fiscal year shall be deemed to be nil.

Non-arm's length sales.

5(1)

Where an operator sells output of a mineral processing establishment to a person with whom he is not dealing at arm's length, the director may fix as the price therefor an amount based on the price thereof at the posted Canadian price for the output of that kind as of the date on which the output was delivered to the person, or where there is no posted Canadian price of output for that kind, the price that would be paid as of that date for output of that class by a buyer who was dealing at arm's length with the operator and to whom the operator did not give any special advantage over other buyers, and the amount when so fixed shall, subject to sections 32 and 33, be conclusively deemed to be the sale price for determining the revenue of the operator, and the director shall notify the operator of the amount so fixed.

Non-arm's length fees.

5(2)

Where an operator charges a fee to a person with whom he is not dealing at arm's length for processing, the director may fix an amount based on the fee that would be paid for the processing by a person who is dealing at arm's length with the operator and to whom the operator did not give any special advantage over other persons seeking such processing, and the amount, when so fixed, shall, subject to sections 32 and 33, be conclusively deemed to be the fee for the processing for determining the revenue of the operator, and the director shall notify the operator of the amount so fixed.

Revenue from output partially processed previously.

6

Where the mining or processing of a mineral product was partially done in a fiscal year of the operator previous to the fiscal year in which the processing of that output is completed, regardless of when the mining or processing of the output was begun, the revenues from the sale of the output shall be included in the revenues of the fiscal year in which the output was sold.

Deductible expenses.

7(1)

In calculating the profit of an operator in a fiscal year there shall be deducted any of the following expenses, payments and allowances that relate to the mining, processing and sale of output mined in Manitoba, that were incurred in that fiscal year, and that are approved by the director:

(a) the actual costs to the operator of transportation of any output sold, the payment of which is the responsibility of the operator;

(b) the salaries of the employees of the operator paid by the operator;

(c) the actual and proper operating costs of the operator of mining, milling, smelting, refining, recrystallizing or otherwise beneficiating the output in Manitoba;

(d) the actual cost of insurance, and mint and marketing costs of the operator directly relating to marketing the output;

(e) municipal taxes paid by the operator or contributions made to a municipality or local government district in Manitoba for essential municipal or public services either in lieu of municipal taxes or under an agreement with the municipality or local government district;

(f) the actual costs of the operator for any research that is designed to reduce the cost of output of the mineral processing establishment of the operator, or has as its objective the recovery of additional output from the mineral processing establishment of the operator;

(g) an annual depreciation allowance calculated at a single rate for all depreciable assets, which, subject to section 9, shall not exceed 20% of the undepreciated balance of the depreciable assets of the operator as of the end of the fiscal year for which the profit is being calculated;

(h) exploration expenses incurred by the operator or such portion thereof as the operator may determine;

(i) the actual costs of the operator for the purchase of mineral products mined in Manitoba for further processing or for resale;

(j) any other expenses incurred by the operator attributable to the mining, processing and sale of the output.

Deduction of former exploration expenses.

7(2)

In calculating the profit of an operator in a fiscal year there may be deducted exploration expenses approved by the director that were incurred by the operator after December 31, 1978 and before January 1, 1986, whether before of after the operator commenced mining activities in the province and that have not been deducted under this section for the purpose of calculating the profit of the operator in any previous fiscal year.

Deduction of exploration expenses.

7(3)

Subject to subsection (4), in calculating the profit of an operator in a fiscal year there may be deducted qualified exploration expenses approved by the director that were incurred by the operator after December 31, 1985, whether before or after the operator commenced mining activities in the province and that have not been deducted under this section for the purpose of calculating the profit of the operator in any previous fiscal year.

Application to director.

7(4)

Where exploration expenses are incurred within or in the immediate vicinity of an operating mine they shall not be deducted under subsection (3) unless the director has, on application by the operator within one year of the exploration expenses being incurred, declared in writing these expenses to be qualified exploration expenses.

Non-arms length expenses, etc.

8

Where an operator incurs an expense or pays a fee to obtain or acquire any goods, material, property or service, and the expense or fee was paid or is payable to a person with whom the operator was not dealing at arm's length, the director may fix an amount based on the actual costs incurred by that person not including any profit, gain or commission to that person or to any other party with whom that person or the operator is not dealing at arm's length, and the amount, when so fixed, shall, subject to sections 32 and 33, be conclusively deemed to be the expense or fee paid or payable for the goods, material, property or service for determining expenses, payments and allowances of the operator, and the director shall notify the operator of the amount so fixed.

Allowance for larger depreciation.

9

Where the life of a mine (or the useful life of a depreciable asset) of a mineral processing establishment justifies a greater rate of depreciation than that allowed under clause 7(l)(g), the Lieutenant Governor in Council may, for any fiscal year specified by the Lieutenant Governor in Council, authorize the annual depreciation to be allowed to the operator of the mineral processing establishment under clause 7(1)(g) to be calculated at a rate exceeding 20% of the undepreciated balance of the depreciable asset but not exceeding 60% of the undepreciated balance of the depreciable asset.

Adjustment of expenses for processing outside Manitoba.

10(1)

Where the milling, smelting, refining, recrystallizing or other beneficiating of any mineral or mineral product mined by the operator in Manitoba is done outside Manitoba by the operator in a fiscal year, the director shall determine whether all or part of the deductions mentioned in section 7 shall be allowed in that fiscal year in respect of those minerals and mineral products but in no case shall a deduction be allowed for any expense or allowance that has been claimed or could be claimed by the operator as a deduction under the mining tax or royalty Act of any other jurisdiction.

Adjustment of expenses for minerals outside Manitoba.

10(2)

Where depreciable assets of an operator of a mineral processing establishment are used in a fiscal year to mine or process any mineral or mineral product mined by the operator or any other person outside Manitoba, the director shall determine whether all or part of the deductions mentioned in section 7 in respect of those minerals and mineral products shall not be allowed in that fiscal year.

Processing allowance for in-province processing.

10(3)

Subject to subsection (5), where the processing of any mineral or mineral product mined in Manitoba from a mineral processing establishment is done in Manitoba by the operator in a fiscal year, the director may approve for the fiscal year in respect of those mineral products an allowance for processing by way of return on capital employed by the operator that does not exceed the total of the amounts calculated in accordance with Formula 3 set out in the Schedule for each stage of the processing.

Processing allowance for service assets.

10(4)

Subject to subsection (5), where the processing of any mineral or mineral product mined in Manitoba from a mineral processing establishment is done in Manitoba by the operator in a fiscal year and the director has approved an allowance in that fiscal year under subsection (3), the director shall approve for that fiscal year, by way of return on capital employed by the operator in respect of assets that were necessary to the servicing and management of the processing activities of the operator in that fiscal year but that are not processing assets, an additional allowance equal to 25% of the amount of the allowance approved under subsection (3) for that fiscal year.

Maximum and minimum processing allowance.

10(5)

Where for any fiscal year allowances are approved under subsections (3), (4) and (6), the total of those allowances approved for that fiscal year under those subsections shall not be more than 65% nor less than 15% of the profit of the operator in that fiscal year as calculated before the allowances under those subsections but after the deduction of all expenses, payments and allowances deductible under section 7.

Processing allowance for out of province processing.

10(6)

Subject to subsection (5), where the processing of any mineral or mineral bearing product mined in Manitoba from a mineral processing establishment is done outside Manitoba by the operator in a fiscal year, the director may approve for the fiscal year in respect of those mineral products an allowance for processing by way of return on capital employed by the operator not exceeding an amount calculated in accordance with Formula 4 set out in the Schedule but in no case shall an allowance for processing be allowed where a processing allowance has been claimed or could be claimed by the operator under the mining tax or royalty Act of any other jurisdiction.

Capital investment, interest and depletion not allowed.

11(1)

No allowance or deduction shall be allowed under section 7

(a) for capital invested: or

(b) for interest; or

(c) for dividends upon capital stock; or

(d) for depreciation in the value of a mine, mining land or mining property, by reason of exhaustion or partial exhaustion of the ore or mineral; or

(e) for moneys paid in acquiring the right to mine or an option to the right to mine.

Depreciation allowance in joint ventures.

11(2)

Notwithstanding the definition "depreciable assets" an allowance for depreciation may be allowed under section 7 where an operator invests in depreciable assets in order to acquire an interest in a mine where that operator is a member of a partnership, syndicate, or group of persons engaged in a joint venture in the operation of that mine.

Deduction for exploration expenses in joint ventures.

11(3)

Notwithstanding the definition "exploration expenses" a deduction for exploration expenses may be allowed under section 7 where an operator incurs exploration expenses in order to acquire an interest in a mine where that operator is a member of a partnership, syndicate, or group of persons engaged in a joint venture in the operation of that mine.

Inter-provincial agreements to fix method of determining profit.

12

Where an operator carries on mining or processing in Manitoba and in any other province, and the nature of the operator's establishment is such as to render it difficult or impossible to ascertain the profit of the operator for the purposes of calculating tax payable under this Act, or under similar legislation of that other province, the minister may, with the approval of the Lieutenant Governor in Council, enter into an agreement with the operator and the government of that other province, or a minister thereof, providing for the method of determining the profit, within each province; of the operator for any fiscal year that occurs while the agreement is in force, and where a provision of any such agreement is inconsistent with or repugnant to a provision of this Act, the provision of the agreement prevails.

Calculation of tax.

13(1)

Subject to subsection (2), every operator of a mineral processing establishment in Manitoba shall, for each fiscal year in which he has a profit, pay to the minister a tax equal to 18% of the profit of the operator in that fiscal year.

Deduction of new investment credit from tax.

13(2)

Notwithstanding subsection (1), an operator may, in paying tax or in calculating or estimating the tax payable by him for any fiscal year deduct from the tax payable an amount equal to the lesser of

(a) the new investment credit of the operator as of the last day of that fiscal year; or

(b) 50% of the tax calculated under subsection (1).

Time for payment of tax.

14

Every operator liable for payment of a tax for a fiscal year shall pay to the minister on account of the tax for that fiscal year

(a) on or before the 25th day of each of the last 10 months in the fiscal year, an amount equal to

(i) 1/10th of the tax payable by him for that fiscal year as estimated by him on the basis of his estimated profit for that fiscal year, or

(ii) 1/10th of the amount of tax paid or payable by him for the next previous fiscal year; and

(b) on or before March 25 of the next following fiscal year, the remainder, if any, of the tax payable by him for that fiscal year as calculated under this Act.

Taxes, etc., debts.

15

The amount of any tax payable under this Act by an operator, and any penalty assessed under this Act against an operator, and any interest payable under this Act by an operator, are debts due by the operator to the government and are recoverable in court in the name of Her Majesty in right of Manitoba represented therein by the minister.

Interest on debt

16(1)

From the date on which any debt to the government under this Act is to be paid or remitted by an operator, the debt bears interest

(a) at the rate of 12% per year; or

(b) at such other rate per year as the Lieutenant Governor in Council may prescribe;

compounded annually, and the interest is payable to the minister for the public use of the government; but, where the Lieutenant Governor prescribes a rate of interest under this section, the rate shall not be effective until at least seven days after the date on which the rate is prescribed.

Interest on deficiency of tax.

16(2)

Where an operator pays an instalment of tax in a fiscal year under section 14, if the instalment is less than

(a) 1/10th of the tax payable for that fiscal year; or

(b) 1/10th of the tax paid or payable by him for the next previous fiscal year;

whichever is the lesser, he shall pay interest on the amount by which the lesser of the sums mentioned in clauses (a) and (b) exceeds the amount of the instalment from the date on which the instalment was required to be paid to the date that the deficiency is paid.

Interest on refunds.

16(3)

Where the minister refunds under this Act any amount that has been paid as tax or interest by reason of an assessment or the amount of an assessment being reduced on appeal, he shall add to the amount of the refund interest at the rate fixed or prescribed under subsection (1) for the period from the day the amount being refunded was paid by the operator to the day on which the refund is made.

Who is a debtor.

17(1)

For purposes of the enforcement procedures set out in sections 18 to 21, a person shall be deemed to be a debtor of the government in one or more of the following circumstances:

(a) the person has declared a tax liability on a return filed under this Act;

(b) the person has received an assessment and

(i) has not appealed the assessment within the time period required by this Act, or

(ii) has appealed, and the appeal has been finally resolved in favour of the government;

(c) the person has declared, or agreed to, a tax liability in any form of writing, including the issuing of a cheque on which payment has not been honoured for any reason;

(d) an action by the government to recover moneys as a debt due by the person under this Act has been finally resolved in favour of the government;

(e) the government has commenced an action to recover moneys allegedly owing by the person as a debt due to the government under this Act.

Equivalent expressions.

17(2)

The expression "debtor of the government" in subsection (1) includes the expression "operator liable for the payment of any debt under this Act" and any similar expression contained in sections 18 to 21.

Where court action commenced.

17(3)

Where any of the enforcement procedures set out in sections 18 to 21 have been used to recover moneys in the circumstances described in clause (1)(e), the moneys shall be paid into court and, upon final resolution of the court action, shall be paid

(a) to the government, to the extent required to satisfy the judgment in the court action and any costs thereof assessed against the debtor; or

(b) to the debtor, to the extent that the moneys are not required for purposes of clause (a).

Application by alleged debtor.

17(4)

Where any of the enforcement procedures set out in sections 18 to 21 have been or are being used to recover a debt allegedly owing by a person who is not deemed to be a debtor of the government under subsection (1), the person may, within 30 days of the exercise of the enforcement procedure or within such further time as the court may allow, apply to court for an order under subsection (5).

Order of restitution, etc.

17(5)

Where, upon hearing an application under subsection (4), the court is satisfied that the applicant owes no debt to the government, or owes a smaller debt than the government has alleged, the court may

(a) where applicable, order immediate termination of the enforcement procedure; and

(b) order the government to make restitution to the applicant in an appropriate amount, including any moneys reasonably expended by the applicant in applying for the order.

Debts to Crown a lien on assets.

18(1)

The amount of any debt due from any operator to the government under this Act binds, and is a lien and charge in favour of the government on, all the property in the province, real and personal, of the operator.

Certificate of debts and registration.

18(2)

The minister may issue a certificate, in a form prescribed in the regulations, showing the name and address of the operator liable for the payment of any debt under this Act and certifying the amount of the debt payable; and he may register the certificate in the Land Titles office of a land titles district, and from the time of the registration, the certificate binds and is a lien and charge, in favour of the government, for the amount so certified, on all lands of the person liable situated in that land titles district.

Realization of lien.

18(3)

A certificate issued under subsection (2) shall be registered on its production without an affidavit of execution, and the lien and charge thereby created may be realized in the same manner as if it were a mortgage on the land executed by the owner thereof the payment of the principal and interest of which was in default at the time of registration.

Lien on bankruptcy proceedings.

18(4)

In case of the insolvency of any person, or the liquidation of any company, from whom or from which a debt is due under this Act, the amount of the debt is a lien and charge on the estate and assets of the person or company, subject to any statute of Canada and to the costs and charges of insolvency or liquidation proceedings.

Minister may order payment.

19(1)

Where the minister is informed or suspects that a person is or is about to become indebted, or liable to make any payment, to an operator who owes a debt to the government under this Act, the minister may, by registered letter or by letter served personally, demand of that person that the moneys otherwise payable by him to the operator be paid, in whole or in part, to the minister on account of the liability of the operator under this Act.

Discharge of liability to debtor.

19(2)

The receipt of the minister for moneys paid pursuant to a demand made under subsection (1) constitutes a good and sufficient discharge of the liability of the person to the operator to the extent of the amount received by the minister.

Liability to pay under demand.

19(3)

Any person discharging any liability to an operator after receipt of the demand under subsection (1) is personally liable to Her Majesty in right of Manitoba to the extent of the lesser of

(a) the liability discharged as between him and the operator; or

(b) the liability of the operator for a debt payable to the government under this Act, including interest thereon.

Personal service.

19(4)

A letter under subsection (1) shall be deemed to have been served personally on a person engaged in business if it has been left with an adult person employed at the place of business of the person.

Service of demand in business name.

19(5)

Where a person who is, or is about to become, indebted or liable to an operator carries on business under a name or style other than his own name, the registered or other letter under subsection (1) may be addressed to the person in the name or style under which he carries on business.

Service of demand on partnership.

19(6)

Where the persons who are, or are about to become, indebted or liable to an operator carry on business in partnership, the registered or other letter under subsection (1) may be addressed to the partnership name and the letter under subsection (1) shall be deemed to have been served personally on all the partners if it has been served on one of the partners or left with an adult person employed at the place of business of the partnership.

Warrant against personal property.

20(1)

The minister may issue a warrant for the amount of debt due to the government under this Act, together with the costs, expenses and poundage of the sheriff, directed to a sheriff, and the warrant has the same force and effect, and is subject to the same exemptions, as a writ of fieri facias issued out of the Court of Queen's Bench.

Sale of goods by auction.

20(2)

Subject to subsection (4), goods or property seized under a warrant issued in accordance with this section shall be kept for 10 days at the cost and charges of the debtor; and if the debtor does not pay the sum due, together with the costs and charges within the 10 days, the goods and property seized under the warrant may be sold by public auction.

Notice of sale.

20(3)

Except in the case of perishable goods or property seized under a warrant issued in accordance with this section, notice of the sale setting forth the time and place thereof, together with a general description of the goods and property to be sold, shall be published at least once in a local newspaper of general local circulation.

Sale of perishable goods.

20(4)

In the case of perishable goods or property the sheriff making the seizure under a warrant issued in accordance with this section shall give notice to the debtor of his intention to sell the goods or property, and it shall be sold as soon as reasonably practical and neither the sheriff nor the minister is liable in damages for any loss occurring which would not have occurred if there had been no seizure.

Disposal of surplus.

20(5)

Any surplus resulting from the sale of goods or property under this section, after deduction of the amount owing by the debtor and all costs and charges, shall be paid to the debtor.

Demand for payment if debtor is leaving Manitoba.

21(1)

The minister, if he suspects that a debtor is about to leave Manitoba, may, for that or any other reason, by notice sent to the debtor demand payment of all taxes, penalties, and costs, for which the debtor is liable; and the debtor shall pay them within 10 days from the date of the mailing of the notice notwithstanding any other provision of this Act.

Seizure of goods upon non-payment.

21(2)

Non-payment of the taxes, penalties and costs within the specified time renders the goods and property of the debtor liable to seizure by the sheriff of the district within which the goods and property of the debtor are situated.

Certificate to authorize seizure.

21(3)

A certificate of non-compliance with any such demand, signed by the minister, setting forth the particulars of the demand and placed in the hands of the sheriff, is sufficient authority to the sheriff to seize sufficient of goods and property of the debtor to meet the demand.

Sale of goods seized.

21(4)

The sale of the goods and property seized under this section, and the disposition of the money realized, shall be conducted in the manner prescribed in section 20.

Filing of return.

22(1)

Every operator of a mineral processing establishment shall, without any demand therefor, on or before June 30 in each year file with the director a return for the previous fiscal year in a form prescribed in the regulations and containing information required under the regulations.

Estimate of tax.

22(2)

Every operator filing a return under this Act shall, in the return, calculate the amount of tax payable by him under the Act for the fiscal year to which the return relates.

Extension of time for filing return.

22(3)

The director may, for any reason satisfactory to him, extend for such reasonable time as specified by him the time within which an operator is required to file a return under this Act.

Unconsolidated financial statement.

23

Each return filed under this Act by an operator shall be accompanied by audited unconsolidated financial statements of the operator and detailed statements of the operations of the operator indicating the expenses, revenues, assets, liabilities and any other details that may be required by the director allocated to the mineral processing establishment of the operator within Manitoba and to his operations outside Manitoba and the information contained in the detailed statements shall be reconciled with the unconsolidated financial statements.

Verification of return.

24

Each return filed under this Act shall be verified by a statutory declaration of an official of the operator filing the return who has full knowledge of, or has the opportunity to acquaint himself with, the information set out in the return.

Failure to file return.

25

Every operator who fails to file a return for a fiscal year within the time fixed or allowed for the filing of the return is liable, regardless of whether he is prosecuted or convicted under any provision of this Act to a penalty, to be assessed by the minister, not exceeding $100. for each day during which the failure continued, and any amount assessed under this section shall be conclusively deemed to be tax payable under this Act and in addition to any other tax payable under this Act and may be collected as tax payable under this Act.

Return not binding.

26

Neither the minister nor the director is bound by a return or information supplied by or on behalf of any person and may, notwithstanding any return or information supplied, or where no return has been filed, make the assessments contemplated under this Act.

Requirement of additional information.

27(1)

The minister or the director may, for any purpose relating to the administration or enforcement of this Act, by registered letter or by demand served on the person, require a person, within such reasonable time as stipulated in the letter or demand

(a) to provide any information or additional information, or, to submit any return or supplementary return to the minister or to the director;

(b) to produce to the minister or to the director any book, record, writing or other document; or

(c) to make certain books, records or documents of the operator, or information, available to the minister or the director or to a person designated by the minister or director.

Failure to supply information.

27(2)

Every operator who fails to comply with a requirement of the minister or director is liable, regardless of whether he is prosecuted or convicted under any provision of this Act, to a penalty to be assessed by the minister not exceeding $200. for each day during which the failure continues, and any amount assessed under this section shall be conclusively deemed to be tax payable under this Act and in addition to any other tax payable under this Act and may be collected as tax payable under this Act.

Right to inspect.

28(1)

The director, or any officer appointed by the minister under this Act and duly authorized for the purpose, or any peace officer may, at any reasonable time and without warrant, enter upon the business premises of any operator, or any premises where the director, officer or peace officer has reasonable and probable grounds to believe that business records of an operator are kept,

(a) for the purpose of ascertaining whether tax has been, or is being, paid by the operator, or the amount of tax payable by the operator; or

(b) to inspect, examine or audit the books, records, documents, engines, machinery, pits, shafts, vessels and premises of the operator, for the purpose of ascertaining the quantities of minerals or mineral products which have been or are being produced or processed by the operator; or

(c) to ascertain whether the operator possesses, or possessed, minerals or mineral products in respect of which tax is payable; or

(d) to take from the mine, or from any stage of the processing, samples and specimens to determine the value of minerals and mineral products being produced or being processed by the operator; or

(e) to make such inquiries and inspections of the premises as the director, officer or peace officer reasonably requires for the purposes of this Act;

or to do two or more of the things mentioned in clauses (a) to (e); and the operator or the employees or agents of the operator shall, at that time, produce for inspection by the director, officer or peace officer such books, records, documents or receptacles as the director, officer or peace officer may require, and any minerals or mineral products which the operator possesses.

Warrant to enter and seize.

28(2)

A justice who is satisfied by information upon oath that there are reasonable and probable grounds to believe that

(a) a violation of this Act or the regulations has occurred or is occurring; and

(b) there is to be found in any building, receptacle, vehicle, or place in the province a book, record, document, mineral, mineral product or other thing which affords evidence of the violation;

may at any time, and where necessary upon ex parte application, issue a warrant authorizing any officer of the Department of Finance, together with any peace officer on whom the officer calls for assistance and such other persons as may be named therein, to enter and search the building, receptacle, vehicle, or place for the book, record, document, mineral, mineral product or thing, and to seize and retain it for production in any court proceedings.

Copies as evidence.

28(3)

Where any book, record or document has been seized, inspected, examined, audited or produced in accordance with this section, the person by whom it has been seized, inspected, examined or audited, or to whom it has been produced, or any officer employed under the minister, may make or cause to be made copies thereof; and a document purporting to be certified by a person authorized by the minister for the purpose to be a copy made pursuant to this subsection, is admissible in evidence and has the same probative force in any court or inquiry as the original book, record or document would have had if it had been proven in the ordinary way.

Return of books, etc.

28(4)

Where any book, record, document, mineral, mineral product or thing has been seized or produced under this section, the person by whom it was seized or to whom it was produced shall

(a) in the case of a book, record or document, within a reasonable time of a written request therefor by the person from whom it was seized or by whom it was produced, and where information from the book, record or document is reasonably required for the conduct of the person's business, send the book, record or document or a copy thereof to the person; and

(b) subject to subsection (5), return the original book, record or document, or the mineral, mineral product or thing, to the person from whom it was seized or by whom it was produced, within 180 days of the seizure or production.

Extension by judge.

28(5)

Any person authorized by the minister for the purpose may apply to a judge of the court for an extension of the 180 day period referred to in clause (4)(b), and upon hearing the application the judge may dismiss the application or may grant an extension for such time and subject to such conditions as the judge sees fit, if the extension is reasonable and necessary for purposes of

(a) existing or anticipated court proceedings arising out of an alleged violation of this Act or the regulations; or

(b) a continuing investigation into a suspected violation of this Act or the regulations.

Decision final.

28(6)

The decision of the judge under subsection (5) is final and binding and there is no appeal therefrom.

Where extension rejected.

28(7)

Where the judge dismisses an application for an extension of time under subsection (5), the person who made the application shall, within 30 days of the decision, return the original book, record or document, or the mineral, mineral product or thing, to the person from whom it was seized or by whom it was produced.

Information confidential.

29(1)

Subject to subsection (2), neither the minister nor any person employed by the government under the minister in administration of this Act shall communicate or disclose to any person any information of a private or confidential nature acquired by him under this Act except in so far as may be necessary for the due administration and enforcement of this Act.

Reciprocal exchange of information.

29(2)

The minister may permit information or a copy of any book, record, writing, return or other document submitted by, or obtained from, a person under or in respect of this Act to be given or shown to any person employed by the government of any country, province or state if

(a) information, books, records, writings, returns and other documents obtained by or submitted to the government of that country, province or state for the purposes of any law that imposes a royalty or tax are given or shown to persons employed by the government of Manitoba on a reciprocal basis; and

(b) the minister is satisfied that the information, book, record, writing, return or other document given to or made accessible to the government of that other country, province or state will not be used by the government of that other country, province or state, for any purpose other than the administration and enforcement of a law that provides for the imposition of a royalty or tax.

Notice of arrangements, etc.

29(3)

Where the minister makes an agreement or arrangement respecting the reciprocal exchange of information under subsection (2), the minister shall publish in the Manitoba Gazette a notice setting out the terms of the agreement or arrangement.

Books and records to be available.

30(1)

Each operator shall keep and maintain within Manitoba and make available within Manitoba for inspection, examination and audit under this Act books and records relating to the operations of the operator or make such other arrangements with the director as may be satisfactory to the director to make them available for inspection, examination and audit under this Act.

Nature of books, and records.

30(2)

The books and records referred to in subsection (1) shall reflect

(a) the quantity, weight and other particulars of ore, minerals, and mineral products, produced from, shipped from or received at the mineral processing establishment of the operator or various parts and processes within the mineral processing establishment;

(b) the quantity and value of the sales of minerals and mineral products made by the operator;

(c) the details of revenue arising from custom processing within Manitoba of mineral products mined in Manitoba;

(d) each of the several expenses, payments, allowances and deductions mentioned in sections 7 to 10; and

(e) any other facts and circumstances required to be known in order to ascertain the tax payable under this Act.

Order of the director as to books and records.

30(3)

If doubt arises as to whether the books or records of an operator required under this section reflect the information mentioned in subsection (2) or as to how many books and records are required, the director may, by written order directed to the operator, determine the matter and his decision is final and binding on the operator.

Failure to comply with order of director.

30(4)

Where the director makes an order under subsection (3), the operator to whom the order is directed shall comply with the order, and if he fails to comply with the order he is guilty of an offence and liable, on summary conviction, to a fine not exceeding $1,000.

Keeping of records and books of account.

30(5)

Every person required by this section to keep books and records shall retain all such books and records together with all supporting documentation necessary to verify the information required under this section for a period of at least six years after the expiration of the fiscal year to which the books and records relate.

Period of retention of records in certain cases.

30(6)

Notwithstanding subsection (5), where for a fiscal year, a notice of assessment has not been issued under section 31, or an operator disputes the amount of an assessment under section 32, or appeals the decision of the minister under section 33, the books and records required by this section shall be retained until the notice of assessment has been issued and has been accepted by the operator or dealt with to a final conclusion by the minister or the court.

Permission for earlier disposition of records.

30(7)

A person required under subsection (5) or (6) to keep books and records together with all supporting documentation necessary to verify the information required under this section for a period of six years or more may apply to the director for written permission to dispose of certain of those books, records or documents at an earlier date and the director may give such permission.

Assessment

31(1)

Where

(a) an operator fails to make a return required under this Act in respect of a fiscal year; or

(b) the return of an operator in respect of a fiscal year is not, in the opinion of the director, substantiated by books and records of the operator; or

(c) upon inspection, examination or audit of books, records and documents, it appears to the satisfaction of the director that any tax payable by an operator under this Act in respect of a fiscal year has not been paid in accordance with this Act;

the director may make an assessment of the amount of tax payable by the operator in respect of the fiscal year, and subject to sections 32 and 33, the amount so assessed shall be conclusively deemed to be the amount of the tax payable by the operator in respect of that fiscal year.

Notice of assessment.

31(2)

Where the director has made an assessment under subsection (1), he shall, by notice in writing either mailed to or served on the operator, require the operator to remit to the minister, or otherwise account for, within 30 days after the date on which the notice is mailed or served, the tax payable as assessed under subsection (1); and thereupon the operator shall, within that time, pay the tax assessed or otherwise account therefor to the satisfaction of the minister.

Evidence of serving notice.

31(3)

An affidavit or statutory declaration by the person serving or mailing a notice pursuant to subsection (2) stating that he has served or mailed the notice is prima facie proof that the amount stated in the notice is due and owing; and the onus of proving otherwise rests on the operator.

Right to re-assess.

31(4)

Where the director has, under this section made an assessment of the amount of tax payable by the operator in respect of a fiscal year, he is not by reason thereof prevented or prohibited from making a further assessment or a reassessment of the amount of tax payable by the operator in respect of that fiscal year; but, where an operator has, under section 32 or 33, appealed an assessment under this section in respect of a fiscal year, the director shall not make a further assessment or re-assessment of the tax payable by the operator in respect of that fiscal year unless the further assessment or re-assessment is based on information that was not in the return of the applicant or otherwise submitted to the director by the applicant before or at the time the appealed assessment was made.

Appeal to minister.

32(1)

Where an operator disputes the amount of an assessment made under section 31, he may personally or by his agent, within 60 days after receipt of the notice of the assessment, serve notice of appeal upon the minister.

Form of notice of appeal.

32(2)

The notice of appeal served under subsection (1) shall be in writing and shall set forth clearly the reasons for the appeal and any facts relative thereto.

Minister to consider appeal.

32(3)

Upon receipt of a notice served under subsection (1), the minister shall duly consider the matter appealed and may affirm, rescind, or amend the assessment including any finding made or allowance allowed by the director in arriving at the amount of the assessment, and shall forthwith send by registered mail to the appellant or serve upon the appellant notice of his decision.

Appeal to court

33(1)

Where a person is dissatisfied with the decision of the minister given under section 32, he may appeal therefrom to the court and the onus shall be on the person to disprove the assessment.

Form of appeal.

33(2)

An appeal under subsection (1) shall be made by filing in the court, within 60 days after the date on which the notice of the decision appealed was sent by registered mail or served under subsection 32(3) or such further period as a judge of the court may, on application, allow, a statement of claim naming Her Majesty the Queen in right of Manitoba as the defendant and setting forth the grounds of the appeal.

Continuation of action.

33(3)

Upon a statement of claim being filed under subsection (2), the action shall continue in the same manner as any other action in the court unless the court otherwise orders; and any party to the action may apply to a judge of the court for directions as to the conduct of or steps to be taken in the action, and the judge may make such orders as he thinks advisable respecting the conduct of the action and steps to be taken therein.

Manner of disposal of appeal.

33(4)

Upon an appeal under this section the court may affirm, set aside or vary the decision appealed and may, in delivering judgment disposing of the appeal, order payment or re-payment of the tax, interest and penalties, or costs, by the taxpayer or the government.

Assessment not affected by irregularity.

34(1)

An assessment made by the director under section 31 shall not be varied or disallowed because of any irregularity, informality, omission, or technical error, on the part of any person in the observation of any directory provision of this Act or the regulations up to the date of the issuing of the notice of the assessment.

Effect of appeal.

34(2)

Neither the launching of an appeal by an operator nor any delay in the hearing of an appeal shall in any way affect the due date, the interest, or penalties, or any liability for payment of the tax under this Act that is the subject of the appeal, or in any way delay the collection of the same; but in the event of the assessment of the director being set aside or reduced on appeal, the minister shall refund any amount that has been paid as tax or interest in respect of the assessment or the amount thereof by which it is reduced.

Evasion of tax.

35

Every operator who wilfully attempts to evade payment of all or part of the tax payable by him under this Act by understating his revenues or overstating his expenses, payments or allowances relating to the output of his mineral processing establishment is liable, regardless of whether he has been prosecuted or convicted under any provision of this Act, to a penalty to be assessed by the minister, not exceeding 50% of the amount of the tax sought to be evaded.

Notice of active operation.

36(1)

Every operator of a mineral processing establishment shall within 10 days after a mine is placed in operation for production of minerals or mineral products serve the director with a notice in writing setting out

(a) the name and location of the mineral processing establishment;

(b) a description of the processing carried on in the mineral processing establishment;

(c) the location, name and a description of any mine operated as part of the mineral processing establishment;

(d) the name and address of the operator;

(e) the name and address of the manager of the mineral processing establishment or of some other person to whom notices required to be given under this Act or the regulations may be given; and

(f) the date on which the mineral processing establishment was placed in operation;

and shall notify the director in writing of any change in the information set out in the notice or any suspension or termination of operation of the mineral processing establishment.

Notice of shipping.

36(2)

No operator shall ship, send, take or carry away or permit to be shipped, sent, taken or carried away, any mineral or mineral product from a mineral processing establishment before the notice required under subsection (1) relating to the mineral processing establishment is served on the director unless permission for the shipping, sending, taking or carrying away has been granted in writing by the director.

Failure to produce records, etc.

37(1)

Every person who

(a) refuses or wilfully neglects to produce as required under this Act books, records or documents to a person entitled under this Act to inspect, examine or audit them;

(b) refuses or wilfully neglects to answer any question put to him by a person entitled under this Act to do so relating to any matter concerning which he is required under this Act to answer;

(c) refuses or wilfully neglects to make any return or report required from him under this Act;

(d) makes a false or misleading return or report or gives false or misleading answers or information in any return or report under this Act, or makes a false or misleading answer to any question put to him by a person entitled to do so relating to any matter concerning which he is required under this Act to answer;

is guilty of an offence and liable on summary conviction to a fine of not less than $100.

Obstructing inspections, etc.

37(2)

Every person who obstructs the minister or the director or any other person authorized under this Act to make any inspection, examination or audit of any books, records, documents, engines, machinery, pits, shafts, vessels or premises in making any such inspection, examination or audit in the administration of this Act, is guilty of an offence and liable on summary conviction to a fine of not less than $100.

Failure to obey Act an offence.

38

Any person who disobeys, or refuses, or wilfully neglects, omits, or fails, to comply with any provision of this Act or the regulations or any request or requirement made or imposed under the authority of this Act is guilty of an offence.

Penalty.

39

Any person who is guilty of an offence under this Act in respect of which no penalty is expressly provided elsewhere herein is liable, on summary conviction, to a fine of not less than $50.

Officers of corporation as parties to offence.

40(1)

Where a corporation or an association of corporations disobeys, or refuses, neglects, omits or fails to comply with any provision of this Act or the regulations or any request or requirement made or imposed under the authority of this Act, every director or officer of the corporation, or of the association or of a corporation that is a member of the association, who authorized, permitted or acquiesced in the disobedience, refusal, neglect, omission or failure is guilty of an offence and liable on summary conviction to a fine of an amount not exceeding the maximum amount to which the corporation or association, would be liable if it were found guilty, or to imprisonment for a term not exceeding six months or to both.

Acts of agent deemed acts of principal.

40(2)

In construing and enforcing this Act, the act, omission, neglect, or failure, of an officer, employee, or agent of, or of any other person acting for, an operator and acting within the scope of his employment or instructions, shall be deemed to be the act, omission, neglect, or failure, of the operator.

Limitation on prosecution.

41

Notwithstanding any other Act of the Legislature, proceedings in respect of the prosecution in respect of an alleged offence under this Act relating to a false or misleading statement or answer may be instituted at any time after the offence was alleged to have been committed; and proceedings in respect of a prosecution of any other alleged offence under this Act or the regulations may be instituted at any time within six years after the time when the subject matter of the prosecution arose.

Continuing offence.

42

Where a person commits an offence under this Act and the offence continues during more than one day, the person offending is, for each day during which the offence continues, guilty of a further offence and may be convicted therefor, and is liable to the same punishment as for the original offence for each day during which the offence continues, and where an information relating to an alleged offence under this Act sets out that the alleged offence continued on several days or for a period of days it shall be treated as and conclusively deemed to be separate informations alleging a separate offence for each of the several days or for each of the days in the period.

Tax paid into Consolidated Fund.

43

The moneys received by way of tax under this Act, shall be paid into the Consolidated Fund and, except for the sums transferred under section 44 to the mining community reserve, shall be used as general revenues of the government.

Mining community reserve continued.

44(1)

The mining community reserve established in the Consolidated Fund shall be continued.

Payments into reserve.

44(2)

In any fiscal year of the government, the Lieutenant Governor in Council may order the transfer to the mining community reserve of sums the aggregate of which does not exceed 3% of the taxes received in that fiscal year under this Act.

Authority to pay from reserve.

44(3)

In addition to all or any moneys authorized to be expended under any other Act of the Legislature, the Lieutenant Governor in Council, in his absolute discretion, may

(a) direct the expenditure from the mining community reserve of such sums as he may specify for the welfare and employment of persons residing in a mining community which is adversely affected by the total or partial suspension, or the closing down, of mining operations attributable to the depletion of ore deposits;

(b) direct the making of loans or advances from the mining community reserve, or the guaranteeing of the repayment of loans or advances made from other sources, to any person for the purposes mentioned in clause (a);

(c) direct that expenditures made for the purposes mentioned in clause (a) by any person and from any source be shared by means of payment from the mining community reserve and provide that any expenditure to be so shared may, in the first instance, be paid from the mining community reserve;

(d) authorize a member of the Executive Council to enter into agreements for and on behalf of the government for the purposes mentioned in clause (a) and authorize the expenditure from the mining community reserve for the purposes of carrying out the agreements; and

(e) without limiting the foregoing, authorize such things to be done as he may deem necessary for the purposes mentioned in clause (a).

Payment from reserve.

44(4)

The Minister of Finance may make payments out of the mining community reserve in accordance with any direction or authority granted under subsection (3).

Transfer of interest.

44(5)

Where the amount in the mining community reserve exceeds $5,000,000., the Minister of Finance, with the authority of the Lieutenant Governor in Council, may transfer from the mining community reserve all or any part of the income or interest received from the investment of the moneys in the reserve or allowed on unexpended balances in the reserve and the amount so transferred shall be treated as revenue of the government; but any part of that interest or income not transferred under this subsection remains a part of the mining community reserve.

Authority to transfer from reserve.

44(6)

Where the amount in the mining community reserve exceeds $5,000,000., the Minister of Finance, with the authority of the Lieutenant Governor in Council, may transfer from the mining community reserve the amount, or any part of the amount, by which the reserve exceeds $5,000,000. and the amount so transferred shall be treated as revenue of the government.

Recoveries.

44(7)

Where any moneys expended, advanced or loaned under the authority of this section are repaid or recovered by the government, the amount repaid or recovered shall be credited to the mining community reserve.

Authorization not to lapse.

44(8)

Notwithstanding any other Act of the Legislature, where any expenditure is directed or authorized under this section, the authority or direction does not lapse and shall not be written off at the close of any fiscal year.

Regulations.

45

For the purpose of carrying out the provisions of this Act according to their intent, the Lieutenant Governor in Council may make such regulations as are ancillary thereto and are not inconsistent therewith; and every regulation made under, and in accordance with the authority granted by, this section has the force of law; and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations,

(a) prescribing forms for use under this Act;

(b) prescribing information required to be contained in returns required under this Act;

(c) prescribing the manner in which the detailed statements of the operations of an operator required to be filed under section 23 shall be reconciled with the unconsolidated financial statements of the operator.

Application of Part I of Mining Royalty and Tax Act

46

Notwithstanding The Mining Royalty and Tax Act, an operator required to pay tax under this Act, or an operator who, if he had a profit in the fiscal year, would be required to pay tax under this Act, is exempt from the payment of royalty tax under Part I of The Mining Royalty and Tax Act.

Transitional provision for 1975 instalments.

47(1)

In the year 1975, sub-clause 14(a)(ii) shall be read as follows:

(a) l/10th of the amount of royalty tax paid and payable by him under Part I of the The Mining Royalty and Tax Act in respect of income for the year 1974;

and for the purposes of calculating interest payable or instalments payable by an operator in the year 1975, clause 16(2)(b) shall be read as follows:

(b) l/10th of the royalty tax paid and payable by him under Part I of The Mining Royalty and Tax Act in respect of income for the year 1974.

Revenues to be accounted for.

47(2)

Where a mineral processing establishment was in production before 1975, all revenues of the operator from the sale or disposal of mineral products before 1975, or from custom processing in Manitoba before 1975 of mineral products originating from ore mined in Manitoba, that have not been reported as revenue under The Mining Royalty and Tax Act shall be deemed to be revenues of the operator after 1974 from the sale or disposal of mineral products or from custom processing of mineral products originating from ore mined in Manitoba.

SCHEDULE

FORMULA 1

New investment credit = (.05 x I) - A

In this formula

I is the total amount invested by the operator in depreciable assets after December 31, 1978

(i) in the construction and equipping of new mining or processing structures or facilities in Manitoba,

(ii) in the major expansion or modernization of mining or processing structures or facilities in Manitoba that is undertaken for the purpose of increasing the potential production of the structures or facilities or diversifying the production of the structures or facilities and that is declared by the Lieutenant Governor in Council to be an approved expansion or modernization expenditure for the purposes of this Formula, and

(iii) in the major alteration, addition or renovation to mining or processing structures or facilities in Manitoba for the purpose in meeting standards imposed under, and with which the operator is required to comply by reason of, The Clean Environment Act, The Workplace Safety and Health Act or the Fisheries Act (Canada) or any regulation made under any of those Acts and that is declared by the Lieutenant Governor in Council to be an approved alteration, addition or renovation expenditure for the purposes of this Formula, but does not include any amount expended for ordinary on-going maintenance or replacement of any structure or facility or for feasibility studies or other intangible assets where the project is not proceeded with as recommended in those studies; and

A is the amount of new investment credit calculated for the purposes of a previous fiscal year and deducted from the tax payable by the operator for any previous fiscal year.

FORMULA 2

(Sec. 4)

Profit for fiscal year = R - E

In this formula

R is the total of

(a) the revenues of the operator in the fiscal year from the sale of mineral products that were mined within Manitoba, whether or not the output has been partially processed outside Manitoba; and

(b) the revenues of the operator in the fiscal year as a result of the custom processing in Manitoba of mineral products originating from ore mined in Manitoba; and

(c) the revenues from custom mining with respect to which expenses are deducted under subsection 7(1) of the Act; and

E is the total of all expenses, payments and allowances that may be deducted as determined in accordance with sections 7 to 12.

FORMULA 3

(Subsec. 10(3))

Allowance in fiscal year for processing minerals or mineral products in Manitoba = M-xQx.O8

N

In this formula

M is the quantity of the mineral bearing substances mined in Manitoba that were processed in each stage of processing by processing assets of the operator in the fiscal year;

N is the total quantity of mineral bearing substances from all sources that were processed in each stage of processing by processing assets of the operator in the fiscal year ; and

Q is the original cost of the processing assets of the operator actually used in each of the stages of processing in the fiscal year in processing the output of the mine less all amounts, with respect to the purchase of processing assets, deducted by the operator under subsection 13(2) from the tax payable in any previous fiscal year.

FORMULA 4

(Subsec. 10(6))

Allowance in fiscal year for profit earned from processing outside Manitoba =

Ox-M.-x.08

N

In this formula

0 is the original cost of the assets of the operator that are located outside Manitoba, that, if they were located within Manitoba, would be processing assets of the operator and that were used in the fiscal year for which the allowance is being calculated by use of the formula, for processing minerals or mineral products mined in Manitoba less all depreciation charged to those assets as shown in the books of the operator for the purposes of preparing financial statements for the shareholders of the operator up to the end of the fiscal year immediately preceding the fiscal year for which the allowance is being calculated by use of the formula;

M is the amount of mineral bearing substances mined in Manitoba that were processed by those assets in the fiscal year; and

N is the total amount of mineral bearing substances from all sources that was processed by those assets in the fiscal year.