Mine Taxation in Canada (47079a16-4741-4ecf-9d44-1e511ce0304a)

IN preparing this paper on Canadian mine taxation, there has been no attempt to detail the requirements of the various taxing bodies; but rather to consider the matter from the standpoint of its underlying principles and give a general idea of the methods adopted. I have added an Appendix setting forth the principal features of the various Acts, which should be used for general reference only, since new rulings alter minor details from time to time. In current legislation, many important points are left to the discretion of the Ministers and their deputies. We are, indeed, fortunate in having in Canada an able and conscientious body of permanent officials, who bring a sense of justice and courtesy to their work which is most commendable, and which has done much to simplify the working out of general problems. The production of metals may rightly be deemed a form of manufacture, but differs from the average manufacturing business in three important respects: (1) In its early stages, it is wholly speculative, since it is impossible to make any definite appraisal of value or possibilities. (2) The principal asset of any mine, i.e., the ore in the ground, is a wasting asset, and is irreplaceable. (3) Any additional burden by way of taxation cannot be passed on to the public but must be borne entirely by the producer. Having regard to the first of these differences, it is apparent that, since the risk of loss is great, the reward in case of success must be correspondingly great. This fact seems to be constantly overlooked by those who regard the all too few outstanding successes in Canadian mining history as fit prey for predatory legislation. As an illustration of the speculative nature of early mining development, let us consider the Province of Ontario-and I take this illustration simply because I am more familiar with conditions there, and not because I believe it differs greatly from any other province. From 1907 to 1933, 165,243 claims were staked and recorded, from which 43 mines were developed which paid one or more dividends. There was, of course, some duplication through re-staking; also, on some claims very little work was done, and most mines have more than one claim. But, since staking and recording cost real money and effort, each of these claims must have been considered to have had merit.