Taxable income calculation

1  (1)  For the purposes of section 5 (2) of the Mining Tax Act"the taxable income for purposes of that Act" may be calculated as if paragraphs 12 (1) (o), 18 (1) (m) and 20 (1) (v.1) and subsections 69 (6) and 69 (7) of the Income Tax Act (Canada)¹ had not been enacted, but the permissive deductions allowable in such revised calculation shall be the lesser of

(a) the maximum permissive deductions for that taxation year that would be allowed under the Income Tax Act (Canada) if the aggregate available amounts in respect of each permissive deduction were the amounts computed and available under the Mining Tax Act, and

(b) the loss for the year, if any, determined for the purposes of the Income Tax Act (Canada), or if no loss then nil,

(i)  plus "the taxable income for purposes of that Act" calculated for the purposes of the Mining Tax Act as if paragraphs 12 (1) (o), 18 (1) (m) and 20 (1) (v.1) and subsections 69 (6) and 69 (7) of the Income Tax Act (Canada) had not been enacted and before any allowance for permissive deductions, or

(ii)  minus the calculation in subparagraph (i) if that calculation results in a loss.

(2)  Where the loss referred to in subsection (1) (b) (ii) is greater than the loss for the year, if any, determined for the purposes of the Income Tax Act (Canada)¹, the permissive deductions allowed shall be nil.

(3)  In this section "permissive deductions" means allowances for capital cost, exploration expenses, development expenses and depletion.

[am. B.C. Reg. 461/76.]