Mine Taxation in Canada (7336795e-af59-48e3-bc85-f5bd7b31ef2c)

TAXATION has become a major item in the operation of Canadian mines, and, as such, merits our most serious consideration. I feel it was a splendid idea for the Institute to set aside this time for a frank discussion of this important subject, and believe great benefit will result from a better understanding of the methods and underlying principles involved. Mining, as a great national industry, may quite properly be called upon to pay its fair share of the cost of running the country; and there is no tendency on our part to avoid this responsibility. There is, however, a very definite demand that the proportion be just, and fairly and sensibly applied. I believe that Mr. C. G. Williams, Secretary of the Canadian Metal Mining Association, and others, are giving details of the various Provincial and Dominion regulati6ns, so I shall not touch on that phase of the situation. However, there are some important factors to which I should like very briefly to call your attention. The first is the vital need for stability. As you all know, a considerable period must elapse between the preliminary stages of any mining venture and the time when it comes to production-or is finally abandoned as un-profitable. These early days are fraught with many unavoidable uncertainties. If, to these natural hazards, the apprehension of instability of governmental action be added, the risk becomes so great that capital seeks other and safer fields for investment, and many otherwise promising projects are thus discarded. There probably never has been a time in recent years when so much money was seeking investment as now. Under favourable conditions, the development of our great mineral resources would be a natural and attractive outlet for this money. The amount of taxation which the mining industry can properly absorb is of the utmost importance at this time, and it might be well to consider this question in its relation to the economic stability of our country, for it cannot be too greatly emphasized that direct taxation is only one item in the net return which our governments derive from the mining industry. Indeed, the many indirect benefits are so manifest that it would seem almost unnecessary to enumerate them! We almost invariably think of mine taxation as a direct company tax-overlooking the fact that sales tax, customs duties, acreage tax, income tax on mine dividends, foreign shareholders' dividend tax, and others, must all be taken into consideration. It would seem that the economic value of non-ferrous metal mining in Canada is not sufficiently understood and appreciated.