Subsection 1204(1)
Cases
3850625 Canada Inc. v. The Queen, 2010 DTC 1089 [at 2976], 2010 TCC 104, aff'd 2011 DTC 5062 [at 5714], 2011 FCA 117
Woods J. found that the taxpayer could include interest from its tax refund in the calculation of its gross resource profits, given that the...
The Queen v. Gulf Canada Resources Ltd., 96 DTC 6065 (FCA)
Although the taxpayer (which was a participant in the Syncrude oil sands project) went on to achieve partial success on other grounds, Pratte J.A....
Gulf Canada Resources Ltd. v. The Queen, 95 DTC 5189 (FCTD), partially rev'd 96 DTC 6065 (FCA).
Capital cost allowance claims and interest relating to the taxpayer's interest in the Syncrude project were not required to be deducted from its...
Echo Bay Mines Ltd. v. The Queen, 92 DTC 6437 (FCTD)
MacKay J. found that the taxpayer (which operated a silver mine in the Northwest Territories) entered into forward sales contracts as hedging...
International Nickel Co. of Canada Ltd. v. MNR, 71 DTC 5332 (FCTD)
The taxpayer made continual outlays on scientific research carried out by its personnel in order to identify improvements to its methods for...
See Also
ATCO Electric Ltd. v. The Queen, 2007 DTC 974, 2007 TCC 243
The Court rejected the position of the Crown that the furthest point at which sub-bituminous coal was not beyond its equivalent of the prime metal...
Astral Energy Ltd. v. MNR, 90 DTC 1844 (TCC)
Bonner J. accepted the taxpayer's submission that the "source of income" referred to in s. 1204(1)(f) are the "oil and gas wells in Canada...
Administrative Policy
29 November 2012 Internal T.I. 2012-0462361I7 - Meaning of "Prime Metal Stage or its Equivalent"
CRA defines "prime metal stage or its equivalent" in accordance with Canada Pacific Ltd v. Canada, 1994 F.C.J. 993 (FCA), followed in The Queen v....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 65 | 145 |
26 January 1996 T.I. 960301 (C.T.O. "Resource Profits, Diamonds, Prime Metal Stage")
"The equivalent of the prime metal stage for gem diamonds is the stage at which the rough diamonds have been separated from the gangue (other...
28 July 1995 Internal T.I. 7-951496
Notwithstanding Mine Assessor v. Denison Mines Ltd., capital tax attributed to facilities and equipment used in production is considered as a...
24 December 1992 Memorandum (Tax Window, No. 27, p. 14, ΒΆ2337)
Unrealized gains and losses on gold loans designated by a gold producer as effective hedges of its gold production will be included in resource...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | 59 |
92 C.R. - Q.17
In light of the Echo Bay decision, hedging gains and losses for non-speculative forward sales contracts with respect to hedged amounts of...
89 C.R. - Q.22
Any gain or loss realized by a mining company from the borrowing of gold (due to changes in the quantum of its liability) will not constitute...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Timing | 42 |
89 C.P.T.J. - Q21
Because you cannot have income from the production of gas in advance of that production, proceeds which are include in income under s. 12(1)(a)...
89 C.P.T.J. - Q22
The resource allowance base of a fully integrated oil and gas company is reduced by CCA claims for Class 13 leasehold improvements. The reduction...
89 C.P.T.J. - Q23
List of items which are not deductible in computing the resource allowance base.
Paragraph 1204(1)(f)
Administrative Policy
28 July 1995 Internal T.I. 7-951496
"Provincial capital tax paid should be allocated between resource and non-resource activity and capital tax attributed to resource activity is a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 44 | |
| Tax Topics - Income Tax Regulations - Regulation 1204 - Subsection 1204(1) | 30 |
Subsection 1204(1.1)
Administrative Policy
20 January 2010 Internal T.I. 2009-0348571I7 - Interest Rate Swaps and Resource Profits
a Canadian resource corporation in the ordinary course of business had borrowed under long-term financings and entered into interest rate swaps...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | 161 |
15 September 2000 Internal T.I. 2000-002748
Losses realized by an oil and gas company on several hedging contracts were deductible in computing its resource profits given that they were...
Articles
Richardson, "Cominco, Westar, and the Legacy of a Gulf", 1993 Canadian Tax Journal, Vol. 41, No. 4, p. 672.
Subsection 1204(3)
Cases
The Queen v. Gulf Canada Resources Ltd., 96 DTC 6065 (FCA)
The extraction by the taxpayer of bitumen from oil sands, and the transformation by it of the bitumen into crude oil, gave rise to "income or loss...