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is whether the Ontario Mining Tax (OMT) is creditable under
section 901. We hold that it is.
Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the years in issue. Rule
references are to the Tax Court Rules of Practice and Procedure.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
A. Petitioner and Kidd Creek Mine
Petitioner was a Delaware corporation the principal place of
business of which was in Stamford, Connecticut, when it filed the
petition.
Petitioner is the successor in interest to Texasgulf Inc., a
Texas corporation which filed consolidated Federal income tax
returns for taxable years 1978, 1979, 1980, and 1981, as the
parent of Texasgulf Canada. Texasgulf Canada discovered the Kidd
Creek mineral reserves near Timmins, Ontario, Canada, in 1964.
Texasgulf Canada explored the reserves, acquired some land claims
from current owners, and began to develop the reserves.
Texasgulf Canada was incorporated in Delaware in 1965 as
Ecstall Mining Ltd. (Ecstall). In 1966, Texasgulf Canada
transferred the Kidd Creek land claims to Ecstall. At that time,
the property had a significant amount of mineral reserves and
substantial value. Ecstall began mining and concentrating
operations at Kidd Creek Mine in 1966. Kidd Creek Mine is an
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