On new Clause 51.1,
Nathan Cullen moved, — That Bill C-30 be amended by adding after line 39 on page 35 the following new clauses:“PART 4
AMENDMENTS TO THE INCOME TAX REGULATIONS
51.1 (1) The definition “tar sands ore” in subsection 1104(2) of the Income Tax Regulations is repealed.
(2) Paragraphs 1104(5)(a) and (b) of the Regulations are replaced by the following:
(a) the processing by the taxpayer of
(i) ore (other than iron ore) all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent,
or
(ii) iron ore all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent; and
(3) Subparagraphs 1104(5)(c) (i) to (iii) of the Regulations are replaced by the following:
(i) output, other than iron ore, from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the prime metal stage or its equivalent,
or
(ii) iron ore from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the pellet stage or its equivalent,
(4) Subparagraphs 1104(5.1)(a)(i) to (iv) of the Regulations are replaced by the following:
(i) ore (other than iron ore) from a mineral resource owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent,
and
(ii) iron ore from a mineral resource owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent;
(5) Subparagraphs 1104(5.1)(b)(i) to (iv) of the Regulations are replaced by the following:
(i) ore (other than iron ore) from a mineral resource not owned by the taxpayer, to any stage that is not beyond the prime metal stage or its equivalent,
and
(ii) iron ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent
(6) Subsection 1104(5.2) of the Regulations is repealed.
(7) Subsection 1104(6) of the Regulations is replaced by the following:
(6) For the purposes of Class 10 in Schedule II,
(a) “income from a mine” includes income reasonably attributable to the processing of
(i) ore, other than iron ore, from a mineral resource not owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent,
or
(ii) iron ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent;
and
(b) “mine” includes a well for the extraction of material from a deposit of calcium chloride, halite or sylvite.
(8) Paragraph 1104(7)(a) of the Regulations is replaced by the following:
(a) “mine” includes
(i) a well for the extraction of material from a deposit of calcium chloride, halite or sylvite, and
(ii) a pit for the extraction of kaolin,
but does not include
(iii) an oil or gas well, or
(iv) a sand pit, gravel pit, clay pit, shale pit, peat bog, deposit of peat or a stone quarry (other than a kaolin pit), or a pit or well for the extraction of material from a deposit of bituminous sands or oil shales;
(9) Paragraph 1104(7)(c) of the Regulations is repealed.
(10) Paragraph 1104(9)(f) of the Regulations is replaced by the following:
(f) processing of
(i) ore, other than iron ore, from a mineral resource to any stage that is not beyond the prime metal stage or its equivalent, or
(ii) iron ore from a mineral resource to any stage that is not beyond the pellet stage or its equivalent;
51.2 The portion of Class 28 of Schedule II to the Regulations following paragraph (e) is replaced by the following:
or that would be described in paragraphs (b) to (e) if in those paragraphs each reference to “after November 7, 1969” were read as “before November 8, 1969”.
51.3 Paragraph (a.2) of Class 41 of Schedule II to the Regulations is repealed.”