,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,capital ,co/ ,all[.e--,9du/rial
  ,m9]al ,m9es
,numb]3 ,,it-#dib
,date3 ,novemb] #h1 #aihb
,ref];e3 ,p>agraph #bj7#a77a7 7al
  ,regul,ns #aajj7#a77g71 #aaja7#d7 &
  #aajd1 ,s*$ule ;,v 6! ,regul,ns74

#a4 ,? bullet9 4cusses ! type ( 9du/rial
  m9]al m9e 9 respect ( : capital co/
  all[.e "u ,"p ,,xi (! ,regul,ns is
  availa#1 &! me?od ( calculat+ ! am.t (
  capital co/ all[.e t may 2 claim$4
#b4 ,capital co/ all[.e is availa# 6a
  taxpay] pursuant 6p>agraph #bj7#a77a71
  ,regul,n #aajj7#a77g7 & ,s*$ule ;,v 6!
  ,regul,ns1 9 respect (! capital co/
  6hm (
                                      #a
               ,,it-#dib             a#a
  7a7 an 9du/rial m9]al m9e1 or
  7b7 a "r 6remove 9du/rial m9]als f an
    9du/rial m9]al m9e1
  
  except ":1 9 ei case1 ! 9du/rial m9]al
  m9e is a 8m9]al res\rce0 def9$ 9
  subsec;n #bdh7#a74 ,provi.n is made 9
  ,"p ,,xii (! ,regul,n = an all[.e 9
  respect (a m9]al res\rce4
#c4 ,! t]m 89du/rial m9]al0 m1ns a non-
  metallic m9]al capa# ( 2+ us$ 9
  9du/ry1 &! ^w m9]al has xs ord9>y m1n+
  ( any *emical or -p.d o3urr+ natur,y z
  a product ( 9organic processes4 ,"s (!
  mo/ -mon 9du/rial m9]als >e3

  ,asbe/os1 ,b>ite1 ,gypsum1 ,pota%
  7sylvite71 ,salt 7halite71 ,gravel1
  ,clay1 ,/"o1 ,lime/"o1 ,b5tonite1
  ,talc1 ,sulphur1 ,s&1 ,silica1
  ,phosphate1 ,qu>tz1 ,feldsp>1
  ,fl\rsp>1 ,graphite1 ,mica1 ,nephel9e
  ,sy5ite
                                      #b
               ,,it-#dib             b#a
  ,h["e1 _! classific,n z m9]als f an
  89du/rial m9]al m9e may 2 alt]$ z a
  result (! def9i;n (a 8m9]al res\rce0 9
  subsec;n #bdh7#a7 : 9cludes a m9]al
  deposit 9 respect ( :
  7a7 ! ,m9i/] ( ,5]gy1 ,m9es &
    ,res\rces has c]tifi$ t ! pr9cipal
    m9]al extract$ is an 9du/rial m9]al
    3ta9$ 9 a non-b$d$ deposit1
--------------------------------------#b
  7b7 ! pr9cipal m9]al extract$ is
    sylvite1 halite or gypsum or
  7c7 ! pr9cipal m9]al extract$ is
    silica extract$ f s&/"o or qu>tzite4
  
  ,z a result1 only m9]als 3ta9$ 9 b$d$
  deposits w qualify z m9]als f an
  9du/rial m9]al m9e un.s ! taxpay] has
  fail$ 6obta9 c]tific,n f ! ,m9i/] (
  ,5]gy1 ,m9es & ,res\rces 9 respect (a
  non-b$d$ deposit4 ,gravel1 clay1 /"o1
  lime/"o1 s& & feldsp> usu,y o3ur 9
  b$d$ deposits4 ,on ! o!r h&1 asbe/os1
  b>ite1 fl\rsp>1 graphite1 mica1     #c
               ,,it-#dib             a#b
  nephel9e sy5ite & talc usu,y o3ur 9
  non-b$d$ deposits4
#d4 ,al? p1t is n a m9]al1 = purposes (
  ,"p ,,xi (! ,regul,ns & ,s*$ules ,,ii
  & ;,v 6! ,regul,ns an 9du/rial m9]al
  m9e 9cludes a p1t bog or deposit (
  p1t1 a m9]al 9cludes p1t1 & m9+
  9cludes ! h>ve/+ ( p1t1 0virtue (
  ,regul,n #aajd7#c74
#e4 ,": ! taxpay] has n be5 grant$ an
  all[.e =a previ\s tax,n ye>1 ! rate (!
  all[.e 9 a3ord.e ) ,s*$ule ;,v 6!
  ,regul,ns is det]m9$ 0divid+ ! capital
  co/ (! m9e or "r 6! taxpay] m9us !
  residual value "!(1 if any1 by
  7a7 9 any case ": ! taxpay] acquir$ a
    "r 6remove only a specifi$ numb] (
    units1 ! specifi$ numb] ( units t he
    acquir$ a "r 6remove1 &
  7b7 9 any o!r case1 ! numb] ( units (
    -m]ci,y m9ea# mat]ial e/imat$ z 2+ 9
    ! m9e :5 ! m9e or "r 0 acquir$4
  
                                      #d
               ,,it-#dib             b#b
  ,residual value ref]s 6! e/imat$ value
  (! prop]ty if all -m]ci,y m9ea#
  mat]ial 7 remov$4 ,once e/abli%$1 !
  abv rate 3t9ues 6apply f ye> 6ye> un.s
  a recalcul,n is requir$ 6be made 9
  circum/.es set \ 9 #f 2l4
#f4 ,! rate e/abli%$ 9 a3ord.e ) #e abv
  is requir$ 6be recalculat$ 9 any ye> t
  x is det]m9$ t
  7a7 ! capital co/ (! m9e or "r is 9
    fact sub/anti,y di6]5t f ! previ\s
    capital co/ am.t us$1 or
  7b7 ! numb] ( units ( -m]ci,y m9ea#
    mat]ial 3ta9$ 9 ! m9e was1 at !
    -m;e;t (! ye> 9 : ! la/ recalcul,n
    (! rate o3urr$ or at ! date (
    acquisi;n (! m9e or "r ": no
    recalcul,n has o3urr$1 di6]5t f !
    numb] ( units us$ 9 ! la/ recalcul,n
    or ! 9itial calcul,n ": no
    recalcul,n has yet o3urr$4
  
  ,! new rate is !n recalculat$ 0divid+
  ! undepreciat$ capital co/ (! m9e   #e
               ,,it-#dib             c#b
  or "r z (! -m;e;t (! ye>1 det]m9$ 9
  a3ord.e ) p>agraph #ac7#ba77f7 us+ !
  correct$ capital co/ ": appropriate1
  less any residual value1 by
--------------------------------------#c
  7a7 9 any case ": ! taxpay] _h acquir$
    a "r only 6remove a specifi$ numb] (
    units1 ! numb] ( units ( -m]ci,y
    m9ea# mat]ial at ! -m;e;t (! ye> t
    he _h a "r 6remove1 &
  7b7 9 any o!r case1 ! numb] ( units (
    -m]ci,y m9ea# mat]ial e/imat$ z
    rema9+ 9 ! m9e at ! -m;e;t ( t ye>4
#g4 ,! maximum capital co/ all[.e t may
  2 claim$ 9 respect (a "picul> m9e or
  "r is ! less] (
  7a7 ! am.t -put$ 0apply+ ! rate
    e/abli%$ 9 a3ord.e ) #e or #f abv 6!
    numb] ( units actu,y m9$ dur+ !
    fiscal p]iod "u 3sid],n1 &
  7b7 ! undepreciat$ capital co/ (! m9e
    or "r
  
                                      #f
               ,,it-#dib             a#c
  ,a taxpay] may1 9 lieu ( claim+
  capital co/ all[.e z det]m9$ abv = all
  8 9du/rial m9]al m9es or "rs1 claim an
  am.t n exce$+ ! less] (
  7a7 4#ajj1 or
  7b7 ! am.t rcvd 0hm 9 ! tax,n ye> f !
    sale ( m9]al
  
  ,9 s* case1 ! taxpay]1 if he has m ?an
  "o m9e or "r1 may allocate ! am.t
  deduct$ am;g 8 m9es & "rs4 ,x %d 2
  not$ t no adju/;t (! rate is provid$ =
  :5 a taxpay] fails 6claim ! maximum
  capital co/ all[.e 9 any ye>4
#h4 ,capital co/ all[.e "u ,"p ,,xi is
  limit$ 6! capital co/ (! m9e or "r &a
  4posi;n (! m9e or "r may give rise 6a
  capital ga91 recapture or t]m9al
  all[.e4 ,x %d 2 not$ 9 ? reg>d t
  ,regul,n #aaja7#d7 deems ea* m9e or "r
  9 respect ( : capital co/ all[.e may 2
  claim$ pursuant 6,regul,n #aajj7#a77g7
  6be a sep>ate prescrib$ class4
                                      #g
               ,,it-#dib             b#c
#i4 ,": l& acquir$ z an 9du/rial m9]al
  m9e is 4pos$ (1 ! 5tire 3sid],n rcvd
  "!=e is proce$s ( 4posi;n ( deprecia#
  prop]ty1 "nly1 ! 9du/rial m9]al m9e1 &
  is 9clud$ 9 ! calcul,n (! undepreciat$
  capital co/ (! class 9 : ! m9e is
  9clud$ "u p>agraph #ac7#ba77f74 ,? is
  s ev5 if ! m9e is exhau/$ prior 6s*
  4posi;n1 or ! taxpay] res]ves ! "r
  6remove ! 9du/rial m9]als1 or has alr1
  9 a sep>ate transac;n1 4pos$ ( t "r4
  ,a t]m9al all[.e _c >ise z l;g z any
  "p (! l& or ! "r 6remove ! m9]als
  "!from is reta9$ 0! taxpay]4
#aj4 ,exp5ditures made = survey+1 te/+
  or develop+ an 9du/rial m9]al m9e or
  "r =! purpose ( det]m9+ :e!r x %d 2
  acquir$ >e curr5t op]at+ exp5ses
  provid$ ! taxpay] is 9 ! m9+ busi;s2
  o!rwise1 !y >e n deducti#4 ,z to
--------------------------------------#d
  :e!r a taxpay] is c>ry+ on a busi;s at
  ! "t1 see ,,x-#cfd4 ,s* exp5ditures
  made af ! deci.n 6acquire !         #h
               ,,it-#dib             a#d
  prop]ty b prior 6actual acquisi;n w 2
  9clud$ 9 ! capital co/ (! 9du/rial
  m9]al m9e or "r un.s ! prop]ty is n 9
  fact acquir$1 9 : case ^! co/s wd 2
  eligi# capital prop]ty provid$ !
  taxpay] is 9 ! m9+ busi;s or a relat$
  busi;s4 ,if ! taxpay] is n c>ry+ on s*
  busi;s at ! "t ( 9curr;e1 !
  exp5ditures w n 2 deducti#4 ,":1 h["e1
  ! prop]ty 9 respect ( : ! exp5ditures
  7 9curr$ is acquir$1 ! exp5ditures =m
  "p (! capital co/ ( t prop]ty4 ,if s*
  co/s >e 9curr$ af ! acquisi;n (!
  prop]ty or "r1 !y >e deducti# z
  exp5ses (! ye> 9 : !y 7 9curr$1 un.s
  !y >e class$ z a 8designat$ ov]burd5
  removal co/0 z def9$ 9 ,regul,n
  #aajd7#b71 9 : case !y w 2 9clud$ 9
  class #ab4 ,h["e1 0virtue ( ,regul,n
  #aajd7#g71 a m9e = purposes ( class
  #ab does n 9clude a s& pit1 gravel
  pit1 clay pit1 %ale pit1 p1t bog1
  deposit ( p1t or a /"o qu>ry1 ?us
                                      #i
               ,,it-#dib             b#d
  elim9at+ mo/ 9du/rial m9]al m9es f
  rcvg class #ab applic,n4





















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