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(3)(3)(b). Third, if an OMT taxpayer does not know the market
value of the output at the pit's mouth, deductions and allowances
are subtracted from the value of the ore at the pit's mouth as
appraised by the mine assessor to compute profit for OMT
purposes. Id. sec. (3)(3)(c).
Most OMT taxpayers use the third method, also known as the
“appraisal” method, to calculate profit for OMT purposes. This
method is not based on the on-site value of ore; it is based on
financial statements and other information included on an OMT
return.
The OMT exempts some taxable profit. Ontario has increased
the exemption over the years. The statutory exemption was (a)
$10,000 before 1969, MTA, R.S.O., ch. 242, sec. 3(1) (1960); (b)
$50,000 from 1969 to 1973, An Act to Amend The Mining Tax Act,
R.S.O. ch. 69, sec. 2(1) (1969); (c) $100,000 from 1974 to 1979,
An Act to Amend The Mining Tax Act of 1972, R.S.O. ch. 132, sec.
2(1) (1975); and (d) $250,000 beginning in 1979, An Act to Amend
The Mining Tax Act of 1972, R.S.O. ch. 40, sec. 1 (1979).
3. Deductions for Expenses
An OMT taxpayer calculates its profit for OMT purposes by
deducting specified expenses from either the pit’s mouth value or
its gross receipts from production. MTA, R.S.O., ch. 140, sec.
3(3). The MTA allows an OMT taxpayer to deduct expenses for:
(a) Scientific research in Canada relating to mining in Ontario
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Last modified: May 25, 2011