2020-0873931I7 Cover Letter - Mining Expenditure Review Table
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: What are the types of expenses that would normally qualify as exploration costs under paragraph (f) of the definition "Canadian exploration expense" in subsection 66.1(6) in the context of a mining project?
Position: See attached table.
Reasons: See attached table.
Author:
Wharram, Kimberley
Section:
Subsection 66.1(6) "Canadian exploration expense"
MEMORANDUM NOTE DE SERVICE
DATE February 9, 2022
TO Ms. Kamlesh Kumar FROM Income Tax Rulings Directorate
À Director, Domestic Tax Division DE Kimberley Wharram
International Large Business Directorate (647) 289-4235
Compliance Programs Branch
└ ┘
FILE 2020-087393
DOSSIER
SUBJECT: Updated Mining Expenditure Review Table
OBJET:
Further to our discussions with Industry Specialist Services and Natural Resources Canada, I am attaching a copy of a revised and updated version of the mining expenditure review table. The table describes expenditures that would normally qualify as exploration costs under paragraph (f) of the definition of Canadian exploration expense (CEE) in subsection 66.1(6) of the Income Tax Act (Canada). The table is intended as a guide only. The actual treatment of a particular expense incurred by a taxpayer will depend on the facts relevant to the particular situation and, therefore, may differ from that outlined in this table.
Yours truly,
Kimberley J. Wharram
Manager,
Resources Section Reorganizations
Division Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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