Effect of Canadian Tax Law on Nonresident Mining Investors

None of the industry submissions could persuade the Canadian Tax Reform draftsmen that the rate of return has had as much bearing on investors' decisions to invest in Canada as the success records of Canadian ore findings. The goverment opted for the position that mining capital goes where the ore can be found. Many tax incentives which were available until the end of 1971 have been greatly reduced. However, it is still recognized that new ventures in exploration and development of natural resources deserve a break even if there is reduced recognition of the established and highly successful members of the industry unless they continue to search and develop. The latter will also get some breaks for processing beyond the prime metal stage.