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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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Last modified: May 25, 2011