Texasgulf Inc. and Subsidiaries, as Successor in Interest to Texasgulf Inc. and Subsidiaries - Page 11

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          profits or had a loss for a taxable year.  There is nothing                 
          analogous to the processing allowance in financial accounting.              
               5.   Calculating OMT Liability                                         
               Most OMT taxpayers started to calculate the OMT with net               
          income from mining and processing reported on their financial               
          statements.  OMT taxpayers adjusted their financial statement net           
          income by adding expenses which the MTA did not allow to be                 
          recovered and subtracting items of income not related to Ontario            
          mining and processing.  OMT taxpayers made these adjustments by             
          reconciling OMT taxable income and financial statement net                  
          income.  OMT taxpayers computed taxable profit by deducting                 
          specified expenses, payments, allowances, and deductions as                 
          described above.  MTA, R.S.O., ch. 140, sec. 3(3) (1972).                   
          D.   The Mine Assessor                                                      
               During the years in issue, the Mine Assessor was responsible           
          for enforcing the Mining Tax Act.  The Mine Assessor encouraged             
          taxpayers to comply with the MTA, administered the MTA,                     
          interpreted and applied the MTA and its regulations, recommended            
          policy related to mineral taxation, and developed and implemented           
          tax assessment standards.  The Mine Assessor reviewed all OMT               
          returns, either confirmed or changed the liability that the OMT             
          taxpayer reported, and assessed the OMT due from operators.                 
               Mine operators who disagreed with the Mine Assessor's                  
          determinations could appeal to the Minister of Natural Resources.           





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