The Mining Tax Act

The Mining Tax Act, C.C.S.M. c. M195 bilingual version (HTML) Table of Contents Section 1 Definitions, date for calculation of revenues, joint ventures 1.1 Change of fiscal year end 1.2 Administration and enforcement 2 Assets partly in and partly outside province 3 Depreciable assets 4 Calculation of profit 4.1 Tax holiday 4.2 New mine and major expansion 4.3 Election to exclude from tax holiday 5 Non-arm's length sales and fees 6 Revenue from output partially processed previously 7 Deductible expenses 8 Non-arm's length expenses 9 Allowance for larger depreciation, short fiscal year depreciation 10 Processing allowances 11 Allowances and depreciation 12 Inter-provincial agreements to fix method of determining profit 13 Imposition of tax 13.1 Repealed 14 Time for payment of tax 15-21 Repealed 22 Filing of return 23 Unconsolidated final statement 24-35 Repealed 36 Notice of active operation 37-42 Repealed 42 Continuing offence 43 Tax paid into Consolidated Fund 44-44.1 Repealed 45 Regulations 46-47 Struck out Schedule HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows: Definitions 1(1) In this Act "advanced exploration project" means (a) excavation of an exploration shaft, adit or decline, (b) construction of an all-weather access road to an advanced exploration site, or (c) diversion, alteration or damming of a natural watercourse for purposes of bulk sampling, mine development or mining, and such other project or class of project that is prescribed by regulation under The Mines and Minerals Act as an advanced exploration project; (« ouvrage d'exploration avancée ») "book value" where used to refer to the book value of an asset, means the original cost of that asset less all depreciation charged to that asset as shown in the books of the owner of the asset for the purposes of preparing financial statements for the shareholders of the company up to the end of the fiscal year immediately preceding the fiscal year in which the book value of the asset is material; (« valeur comptable ») "closure plan" means a plan that sets out a program for protection of the environment during the life of a project, and for rehabilitation of the project site upon closing of the project, and that includes the provision of security to the Crown for performance of rehabilitation work; (« plan de fermeture ») "dealing at arm's length" has the meaning that that expression has in the Income Tax Act (Canada); (« traiter sans lien de dépendance ») "depreciable assets" where used to refer to the depreciable assets of an operator means the assets within Manitoba of the operator resulting from (a) the preproduction expenses incurred by the operator in respect of a mine, whether or not that mine is placed in production, placed in an available for use basis, or abandoned, (b) the aggregate expenditures, not including any interest charges, made by the operator for the purchase and installation within Manitoba of mining buildings and equipment, whether or not the buildings and equipment are placed in production, placed in an available for use basis, or abandoned, (c) the aggregate expenditures, not including interest charges, made by the operator for the purchase and installation within Manitoba of milling, smelting and refining buildings and equipment therein, whether or not the buildings and equipment are placed in production, placed in an available for use basis or abandoned, and (d) all other expenditures, not including interest charges, (i) that have been made by the operator, (ii) that, in the opinion of the director, were made for a necessary part of the mineral processing establishment which is of a permanent nature and necessary to the continuing operation of the mineral processing establishment, and (iii) that are shown in the books of the company as capital expenditures for the purposes of preparing financial statements for the shareholders of the operator, but does not include any assets resulting from expenditures made for the purchase or acquisition of mining properties from another person, or in obtaining an option to purchase or acquire mining properties from another person, or any assets resulting from expenditures that were part of deductible expenses for the purposes of calculating profit under this Act or The Mining Royalty and Tax Act ; (« éléments d'actif amortissables ») "director" means the Deputy Minister of Finance or any assistant deputy minister of Finance; (« directeur ») "exploration expenses" where used to refer to the exploration expenses incurred by an operator means expenses incurred by the operator for actual exploration for new mineral occurrences in the province but not including (a) moneys expended to obtain mineral rights, mining claims or mining leases or any interest or estate therein, or to obtain any share or security of a company having mineral rights, mining claims or mining leases or any interest therein, or (b) expenses incurred in acquiring a depreciable asset, or (c) expenses incurred for pre-production expenses; (« frais d'exploration ») "fiscal year" means the period, which in no case may exceed 12 months, for which the accounts and financial statements of an operator are regularly prepared, and includes a short fiscal year; (« exercice ») "major expansion" means a mine expansion that is eligible for the tax holiday under subsection 4.2(3); (« expansion majeure ») "mine" , when used as a noun, means (a) any opening or excavation in, or working of the ground for the purpose of winning any mineral bearing substances, and (b) all ways, works, engine, machinery, plant, buildings, and premises, below or above ground belonging to, or used in connection with, the operation of mining, but does not include any processing buildings or equipment; (« mine ») "mine" , when used as a verb or in a verbal sense means the working of, disturbing, removing, washing, sifting, crushing, or otherwise dealing with, by any mode or method whatsoever, any soil, earth, rocks, stone or quartz, in the process of obtaining any mineral bearing substance therefrom, whether it has been previously disturbed or not, but does not include processing; (« exploiter ») "mineral" means a mineral as defined in The Mines and Minerals Act but does not include (a) oil or gas, or (b) clay, or (c) gypsum, or (d) clay products, or (e) sand or gravel, or (f) rock or stone used or intended to be used as rock or stone in building or construction, or (g) peat, or (h) salt; (« minéral ») "mineral processing establishment" means the mines, concentrators, smelters, refineries, crystallizers, and associated equipment and buildings, within Manitoba, which constitute the depreciable assets of an operator used for the mining, milling, smelting and refining of mineral products; (« installation de traitement du minéral ») "mineral product" means a product derived from mineral bearing substances processed in a mineral processing establishment of an operator including those mined, milled, smelted, refined, recrystallized or otherwise beneficiated to a state suitable for (a) sale to a person with whom the operator is dealing at arms length for further processing, or (b) fabrication by manufacturing, or (c) acceptance by the Royal Canadian Mint; (« produit minéral ») "minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; (« ministre ») "new mine" means a mine that is eligible for the tax holiday under subsection 4.2(2); (« nouvelle mine ») "operator" , in relation to a mineral processing establishment, means (a) the owner, lessee, tenant, holder or other occupier of the depreciable assets that constitute or form part of the mineral processing establishment, and (b) a trustee in bankruptcy, assignee, liquidator, receiver, receiver-manager, administrator or other person administering, managing, winding-up, controlling or otherwise dealing with the property or business of an operator described in clause (a); but does not include a person who does not participate in the actual operation of the mineral processing establishment if (c) the person merely receives a royalty or rent from a person who actually operates and manages the mineral processing establishment, (d) the person owns the mineral processing establishment, or a part of it, and the establishment is the subject of a lease, grant or licence to another person for the actual operation of it, or (e) the person owns merely the soil or surface rights of land and has no right or title to the mines or minerals on or under the land; (« exploitant ») "output" means the minerals and mineral products taken or gained from a mineral processing establishment; (« production ») "person" includes a partnership, a trust and the Crown in right of Manitoba; (« personne ») "preproduction expenses" means the aggregate expenses and allowances of the kind described in sections 7 to 12, not including any interest charges, incurred by the operator of a mineral processing establishment in the development in Manitoba of an ore body from the date of acquiring the mine that forms part of the mineral processing establishment to the date production, in reasonable commercial quantities, from the mine begins, and that are essential to the production of the output of the mine; (« dépenses engagées avant la production ») "processing" means all forms of crushing, grinding, floatation, roasting, smelting, leaching, recrystallizing and refining performed in a mill, smelter or refinery for the purpose of recovering mineral products from mineral bearing substances; (« traitement ») "processing asset" means any depreciable asset of an operator that is a building or part of a building in which only milling, smelting, recrystallizing and refining activities of the operator take place and all equipment within the building that is used solely for milling, smelting, recrystallizing and refining activities of the operator and, except where the processing plant of the operator is not in operation, includes that depreciable asset whether or not the building or part thereof or the equipment are in production, placed in an available for use basis or abandoned and also includes, in the case of an open pit mine, a primary crusher if it is located beyond the lip of the open pit but does not include any of those depreciable assets that are in or associated solely with a processing plant of the operator that is not in operation; (« élément d'actif servant au traitement ») "profit" where used to refer to the profit of an operator in a fiscal year, means the profit of that operator in that fiscal year as calculated under sections 4 to 12; (« profit ») "progressive rehabilitation" means, in relation to a project site, rehabilitation of the project site that is carried out in the course of the operations of the project on the site; (« remise en état progressive ») "project" means (a) a mine and includes the machinery, plant, buildings, premises, stockpiles, storage facilities, waste dumps or tailings, whether below or above ground, that are used for, or in connection with, mining, and (b) an advanced exploration project; (« ouvrage ») "project site" means the land on which a project is located; (« chantier ») "qualified exploration expenses" where used in section 7 means exploration expenses incurred to discover new ore bodies; (« frais d'exploration admissibles ») "rehabilitation" means, in relation to a project site, actions taken for the purpose of (a) protecting the environment against adverse effects resulting from operations at the project site, (b) minimizing the detrimental impact on adjoining lands of operations at the project site, (c) minimizing hazards to public safety resulting from operations at the project site, and (d) leaving the project site in a state that is compatible with adjoining land uses and that conforms, where applicable, to a zoning by-law or development plan under The Planning Act and to the specifications, limits, terms and conditions of a licence issued under The Environment Act in respect of the project; (« remise en état ») "short fiscal year" means the period of less than 12 months for which the accounts and financial statements of an operator are prepared when there is a change of fiscal year end approved under section 1.1; (« exercice abrégé ») "tax" means a tax payable under this Act; (« taxe ») "tax holiday" means an exemption for new mines or major expansions from tax under this Act as set out in section 4.1; (« exonération fiscale ») "tax holiday period" means the period during which a new mine or major expansion is eligible for the tax holiday as determined under section 4.1; (« période d'exonération fiscale ») "tax holiday pool" means the amount relating to a new mine or major expansion calculated in accordance with Formula 5 set out in the Schedule; (« compte de l'exonération fiscale ») "undepreciated balance" where used to refer to the undepreciated balance of depreciable assets of an operator at the end of a fiscal year, means the amount obtained by deducting from the total of the original cost, not including any interest charges, incurred by the operator in acquiring the depreciable assets prior to the end of that fiscal year, (a) all depreciation claimed and allowed under The Mining Royalty and Tax Act prior to January 1, 1975, (b) all depreciation claimed and allowed under this Act after December 31, 1974 and prior to the end of that fiscal year, (c) proceeds from the sale or disposal of any depreciable assets received or receivable prior to the end of that fiscal year or the original cost of the depreciable assets sold or disposed of prior to the end of that fiscal year, whichever is the lesser; and (d) all amounts each of which is an amount deducted for a previous fiscal year by the operator under subsection 13(2) (as it applied to that year). (« solde non amorti ») Date of calculation of revenues 1(2) For the purposes of this Act, the revenue of an operator shall be calculated as follows: (a) all revenue from the sale or disposal of mineral products to another person shall be calculated as revenue as of the date of delivery of the mineral products to the person to whom they are sold or disposed of; (b) all revenue from custom processing of mineral bearing substances or mineral products shall be calculated as revenue as of the date each stage of the custom processing is completed; (c) all revenue from custom mining with respect to which expenses are deducted under subsection 7(1). Joint ventures 1(3) Where the members of a partnership, syndicate or any other group of persons are jointly or individually the owners, lessees, tenants, holders or occupiers of a mineral processing establishment as a joint venture, each member of the partnership, syndicate or group of persons engaged in the joint venture is deemed to be an operator of the mineral processing establishment, and not to be dealing at arms length with the other members of the joint venture. Interpretation — major expansion 1(4) For the purposes of this Act, a major expansion is deemed to be a mine separate and distinct from the mine that is expanded by it. S.M. 1988-89, c. 19, s. 25 ; S.M. 1989-90, c. 15, s. 50 ; S.M. 1989-90, c. 91, s. 8 ; S.M. 1991-92, c. 9, s. 254 ; S.M. 1992, c. 52, s. 37 ; S.M. 1994, c. 23, s. 18 ; S.M. 1995, c. 30, s. 12 ; S.M. 1998, c. 39, s. 76 ; S.M. 2003, c. 4, s. 54 ; S.M. 2005, c. 40, s. 46 ; S.M. 2006, c. 24, s. 48 ; S.M. 2022, c. 45, s. 24 and 25; S.M. 2025, c. 48, s. 25 . Change of fiscal year end 1.1 Any change to the date of an operator's fiscal year end for the purposes of this Act must be approved by the minister, who must be satisfied that the change is supported by sound business reasons. S.M. 1992, c. 52, s. 37 . Administration and enforcement 1.2 Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act. S.M. 2005, c. 40, s. 47 . Where assets partly within and partly outside the province 2 Where the mine of a mineral processing establishment is situated partly within and partly outside the province, the whole of the mine and all of the assets of the operator of the mineral processing establishment, whether within or outside the province, (a) that are used and operated by the operator in connection with the mine; and (b) that are within the province, or, where situated outside the province, are within 80 kilometres of the boundary of the province, and that if they were situated within the province would be depreciable assets of the operator; shall for the purposes of this Act be conclusively deemed to be depreciable assets of the operator. S.M. 2006, c. 24, s. 49 . Non-arm's length disposal of depreciable assets 3(1) Where an operator sells or disposes of a depreciable asset to a person with whom the operator is not dealing at arm's length, the price received for the sale or disposal of the asset shall, for all purposes under this Act, be conclusively deemed to be the undepreciated balance of that asset. Non-arm's length acquisition of depreciable assets 3(2) Where an operator acquires a depreciable asset from a person with whom the operator is not dealing at arm's length, the price paid for the acquisition of the asset shall, for all purposes under this Act, be conclusively deemed to be the lesser of the undepreciated balance or the book value of that asset as shown in the books of the person from whom the asset was acquired and for the purpose of calculating an allowance for processing under subsections 10(3), (3.1), (4) and (6) that price shall be conclusively deemed to be the original cost of the asset. Removal of depreciable asset 3(3) Where an operator removes from Manitoba a depreciable asset, and does not sell or dispose of it, the depreciable asset shall be conclusively deemed to have been sold by the operator at the undepreciated balance of that asset. Bringing depreciable asset into Manitoba 3(4) Where an operator brings into Manitoba a depreciable asset that has been previously used by the operator outside Manitoba, or that has been previously removed by the operator from Manitoba, the depreciable asset shall be conclusively deemed to have been purchased by the operator at the lesser of the undepreciated balance or the book value of that asset and for the purpose of calculating an allowance for processing under subsections 10(3), (3.1), (4) and (6), that price shall be conclusively deemed to be the original cost of the asset. Calculation of undepreciated balance 3(5) For the purposes of this section, the undepreciated balance means the undepreciated balance as defined in subsection 1(1) less any allowance for depreciation that has been claimed or could be claimed without producing a loss by the operator under the mining tax or royalty Act of any other jurisdiction. S.M. 1988-89, c. 19, s. 26 ; S.M. 1994, c. 23, s. 19 ; S.M. 2010, c. 29, s. 38 . Calculation of profit 4(1) The profit of an operator in a fiscal year shall be calculated in accordance with Formula 2 set out in the Schedule. Profit deemed nil 4(2) Subject to subsection (3), where in the application of Formula 2 set out in the Schedule, the amount represented by E is greater than the amount represented by R, the profit of the operator for the fiscal year shall be deemed to be nil. Exception for new mine or major expansion loss 4(3) Subsection (2) does not apply in determining the profit of an operator of a new mine or major expansion in a tax holiday period. Operator's profit excludes new mine or major expansion 4(4) The profit of an operator referred to in subsection (1) shall not include the operator's profit or loss from a new mine or major expansion that is in a tax holiday period. S.M. 1992, c. 52, s. 38 ; S.M. 2022, c. 45, s. 26 . Tax holiday 4.1(1) An operator's profit from a new mine or major expansion is eligible for an exemption from tax for the period (a) beginning on the day that the new mine or major expansion begins to be used for mining; and (b) ending in the fiscal year in which the tax holiday pool, calculated in accordance with Formula 5 set out in the Schedule, is nil or negative. Profit from new mine or major expansion 4.1(2) Subject to subsection (3), the operator's profit in a fiscal year from a new mine or major expansion eligible for the tax holiday (a) is to be calculated separately as if the new mine or major expansion were the only mine in which the operator had an interest; and (b) is to be calculated in accordance with Formula 2 set out in the Schedule on the basis of only those revenues and expenses that pertain to the new mine or major expansion and the annual depreciation allowance to be deducted is the lesser of (i) the amount calculated under clause 7(1)⁠(g) at the rate of 20% of the undepreciated balance of the depreciable assets of the new mine or major expansion, and (ii) the amount calculated in accordance with Formula 2 for that new mine or major expansion before deducting any depreciation allowance under clause 7(1)⁠(g). Profit at end of tax holiday period 4.1(3) Where in a fiscal year the amount of the tax holiday pool, calculated in accordance with Formula 5 set out in the Schedule becomes nil or negative, the profit of the operator from a new mine or major expansion that is in the tax holiday period in that fiscal year is the amount which is calculated in accordance with Formula 6 set out in the Schedule. S.M. 1992, c. 52, s. 39 ; S.M. 2022, c. 45, s. 27 ; S.M. 2025, c. 48, s. 26 . 4.2(1) [Repealed] S.M. 2025, c. 48, s. 27 . New mine 4.2(2) A mine is eligible for the tax holiday as a new mine if the minister is reasonably satisfied that (a) the ore body to be mined is separate and distinct geologically from an ore body mined by any other mine; (b) the mine has no common workings or mining operations with any other mine; and (c) the mine is not a formerly operated mine. Major expansion 4.2(3) An expansion of an existing mine is eligible for the tax holiday as a major expansion if the minister is reasonably satisfied that (a) the expansion is undertaken for the purpose of increasing the potential production of the existing mine; (b) the expenditures incurred by the operator for the acquisition of depreciable assets in the course of and principally for the purpose of the expansion are not less than 10% of the undepreciated balance of depreciable assets of the operator at the beginning of the fiscal year in which the expansion began to be used for mining; and (c) the mine that is to be expanded is not a new mine in a tax holiday period. Interpretation 4.2(4) For the purpose of subsection (3), (a) re-opening a mine that has been abandoned or closed for a continuous period of at least 60 months is deemed to be an expansion of an existing mine undertaken for the purpose of increasing the potential production of the mine; and (b) the undepreciated balance of depreciable assets of the operator is calculated without reference to assets that pertain to mines that are in a tax holiday period. S.M. 1992, c. 52, s. 39 ; S.M. 2022, c. 45, s. 28 ; S.M. 2025, c. 48, s. 27 . Election to exclude from tax holiday 4.3(1) At the time a return is filed under subsection 22(1), an operator of a new mine or major expansion may file an election with the director for the new mine or major expansion to be excluded from the tax holiday. Effect of election 4.3(2) If an election is filed under subsection (1), (a) any profit from the new mine or major expansion shall not be eligible for the tax holiday calculated in accordance with section 4.1, for that current fiscal year or for subsequent fiscal years; (b) the operator's processing assets with respect to the new mine or major expansion shall not be subject to subsection 10(3.1) in that current fiscal year or in subsequent fiscal years; (c) the undepreciated balance of the depreciable assets of the new mine or major expansion referred to in subsection 11(2.1) shall be added to the operator's undepreciated balance of depreciable assets referred to in clause 7(1)⁠(g) in that current fiscal year; and (d) the new mine or major expansion is permanently excluded from the tax holiday. S.M. 1992, c. 52, s. 39 ; S.M. 2022, c. 45, s. 29 . Non-arm's length sales 5(1) Where an operator sells output of a mineral processing establishment to a person with whom the operator is not dealing at arm's length, the director may fix as the price therefor an amount based on the price thereof at the posted Canadian price for the output of that kind as of the date on which the output was delivered to the person, or where there is no posted Canadian price of output for that kind, the price that would be paid as of that date for output of that class by a buyer who was dealing at arm's length with the operator and to whom the operator did not give any special advantage over other buyers, and the amount when so fixed shall, subject to an appeal under Part I, Division 4 of The Tax Administration and Miscellaneous Taxes Act , be conclusively deemed to be the sale price for determining the revenue of the operator, and the director shall notify the operator of the amount so fixed. Non-arm's length fees 5(2) Where an operator charges a fee to a person with whom the operator is not dealing at arm's length for processing, the director may fix an amount based on the fee that would be paid for the processing by a person who is dealing at arm's length with the operator and to whom the operator did not give any special advantage over other persons seeking such processing, and the amount, when so fixed, shall, subject to an appeal under Part I, Division 4 of The Tax Administration and Miscellaneous Taxes Act , be conclusively deemed to be the fee for the processing for determining the revenue of the operator, and the director shall notify the operator of the amount so fixed. S.M. 1995, c. 30, s. 13 ; S.M. 2005, c. 40, s. 48 ; S.M. 2010, c. 29, s. 38 . Revenue from output partially processed previously 6 Where the mining or processing of a mineral product was partially done in a fiscal year of the operator previous to the fiscal year in which the processing of that output is completed, regardless of when the mining or processing of the output was begun, the revenues from the sale of the output shall be included in the revenues of the fiscal year in which the output was sold. Deductible expenses 7(1) In calculating the profit of an operator in a fiscal year there shall be deducted any of the following expenses, payments and allowances that relate to the mining, processing and sale of output mined in Manitoba, that were incurred in that fiscal year, and that are approved by the director: (a) the actual costs to the operator of transportation of any output sold, the payment of which is the responsibility of the operator; (b) the salaries of the employees of the operator paid by the operator; (c) the actual and proper operating costs of the operator of mining, milling, smelting, refining, recrystallizing or otherwise beneficiating the output in Manitoba; (d) the actual cost of insurance, and mint and marketing costs of the operator directly relating to marketing the output; (e) municipal taxes paid by the operator or contributions made to a municipality or local government district in Manitoba for essential municipal or public services either in lieu of municipal taxes or under an agreement with the municipality or local government district; (f) the actual net costs to the operator for any research that is designed to reduce the cost of output of the mineral processing establishment of the operator, or has as its objective the recovery of additional output from the mineral processing establishment of the operator; (f.1) the actual net costs to the operator of any research that is designed to develop new products or uses of minerals produced from the operator's mine in Manitoba; (g) an annual depreciation allowance calculated at a single rate for all depreciable assets, which, subject to section 9, shall not exceed 20% of the undepreciated balance of the depreciable assets of the operator as of the end of the fiscal year for which the profit is being calculated; (h) exploration expenses incurred by the operator or such portion thereof as the operator may determine; (i) the actual costs of the operator for the purchase of mineral products mined in Manitoba for further processing or for resale; (j) any other expenses incurred by the operator attributable to the mining, processing and sale of the output. Deduction of former exploration expenses 7(2) In calculating the profit of an operator in a fiscal year there may be deducted exploration expenses approved by the director that were incurred by the operator after December 31, 1978 and before January 1, 1986, whether before of after the operator commenced mining activities in the province and that have not been deducted under this section for the purpose of calculating the profit of the operator in any previous fiscal year. Deduction of exploration expenses 7(3) Subject to subsection (4), in calculating the profit of an operator in a fiscal year there may be deducted qualified exploration expenses approved by the director that were incurred by the operator after December 31, 1985, whether before or after the operator commenced mining activities in the province and that have not been deducted under this section for the purpose of calculating the profit of the operator in any previous fiscal year. Additional qualified exploration deduction 7(3.1) Where qualified exploration expenses incurred in a fiscal year commencing after December 31, 1991 exceed a simple average of the qualified exploration expenses for the three immediately preceding fiscal years, in calculating the profit of an operator in any fiscal year commencing after December 31, 1991, there may be deducted in addition to an amount calculated under subsection 7(3), an amount equal to 50% of the amount by which the qualified exploration expenses incurred in that fiscal year exceed the simple average of the qualified exploration expenses for the three immediately preceding fiscal years. Carry forward of amount under subsection 7(3.1) 7(3.2) Subject to subsection (4), in calculating the profit of an operator in a fiscal year there may be deducted the amount of any deduction calculated under subsection (3.1) that has not been deducted under subsection (3.1) for the purpose of calculating the profit of the operator in any previous fiscal year. Application to director 7(4) Where exploration expenses are incurred within or in the immediate vicinity of an operating mine they shall not be deducted under subsection (3) or (3.1) unless the director has, on application by the operator within one year of the exploration expenses being incurred, declared in writing these expenses to be qualified exploration expenses. Deduction of rehabilitation expenses 7(5) In calculating the profit of an operator in a fiscal year, there may be deducted (a) expenses approved by the director that were incurred by the operator for the rehabilitation or progressive rehabilitation of a project site as set out in a closure plan approved by the Director of Mines appointed under The Mines and Minerals Act ; and (b) monies paid by the operator and credited to the mine rehabilitation reserve account referred to in subsection 195(2) of The Mines and Minerals Act . Refund under Mines and Minerals Act 7(6) In calculating the profit of an operator in a fiscal year, all monies and interest thereon returned to the operator in that fiscal year under subsection 195(3) of The Mines and Minerals Act shall be included. S.M. 1988-89, c. 19, s. 27 ; S.M. 1992, c. 52, s. 40 ; S.M. 2025, c. 48, s. 49 . Non-arms length expenses, etc. 8 Where an operator incurs an expense or pays a fee to obtain or acquire any goods, material, property or service, and the expense or fee was paid or is payable to a person with whom the operator was not dealing at arm's length, the director may fix an amount based on the actual costs incurred by that person not including any profit, gain or commission to that person or to any other party with whom that person or the operator is not dealing at arm's length, and the amount, when so fixed, shall, subject to an appeal under Part I, Division 4 of The Tax Administration and Miscellaneous Taxes Act , be conclusively deemed to be the expense or fee paid or payable for the goods, material, property or service for determining expenses, payments and allowances of the operator, and the director shall notify the operator of the amount so fixed. S.M. 1995, c. 30, s. 13 ; S.M. 2005, c. 40, s. 48 . Allowance for larger depreciation 9(1) Where the life of a mine (or the useful life of a depreciable asset) of a mineral processing establishment justifies a greater rate of depreciation than that allowed under clause 7(1)⁠(g), the Lieutenant Governor in Council may, for any fiscal year specified by the Lieutenant Governor in Council, authorize the annual depreciation to be allowed to the operator of the mineral processing establishment under clause 7(1)⁠(g) to be calculated at a rate exceeding 20% of the undepreciated balance of the depreciable asset but not exceeding 60% of the undepreciated balance of the depreciable asset. Short fiscal year depreciation allowance 9(2) Where the fiscal year is a short fiscal year, the depreciation allowance shall be the amount as calculated under clause 7(1)⁠(g), multiplied by the number of days in the short fiscal year, and divided by 365. S.M. 1992, c. 52, s. 41 . Adjustment of expenses for processing outside Manitoba 10(1) Where the milling, smelting, refining, recrystallizing or other beneficiating of any mineral or mineral product mined by the operator in Manitoba is done outside Manitoba by the operator in a fiscal year, the director shall determine whether all or part of the deductions mentioned in section 7 shall be allowed in that fiscal year in respect of those minerals and mineral products but in no case shall a deduction be allowed for any expense or allowance that has been claimed or could be claimed without producing a loss by the operator as a deduction under the mining tax or royalty Act of any other jurisdiction. Adjustment of expenses for minerals outside Manitoba 10(2) Where depreciable assets of an operator of a mineral processing establishment are used in a fiscal year to mine or process any mineral or mineral product mined by the operator or any other person outside Manitoba, the director shall determine whether all or part of the deductions mentioned in section 7 in respect of those minerals and mineral products shall not be allowed in that fiscal year. Processing allowance for in-province processing 10(3) Subject to subsections (3.1), (5) and (7), where the processing of any mineral or mineral product mined in Manitoba from a mineral processing establishment is done in Manitoba by the operator in a fiscal year, the director may approve for the fiscal year in respect of those mineral products (a) an allowance for processing by way of return on capital employed by the operator that does not exceed the total of the amounts calculated in accordance with Formula 3 set out in the Schedule for each stage of the processing; and (b) an additional allowance for processing by way of return on capital employed by the operator that does not exceed the total of the amounts calculated in accordance with Formula 7 set out in the Schedule for each stage of the processing. New mine or major expansion processing assets 10(3.1) An operator (a) shall account separately for processing assets that relate to a new mine or major expansion in the tax holiday period; (b) shall not include the processing assets referred to in clause (a) in the calculation of any processing allowance under Formula 3, 4 or 7 set out in the Schedule; and (c) shall, where in the fiscal year the tax holiday period expires, include the processing assets referred to in clause (a) in the calculation of any processing allowance under Formula 3, 4 or 7 set out in the Schedule, for the next following fiscal year and for subsequent fiscal years. Processing allowance for service assets 10(4) Subject to subsections (5) and (7), where the processing of any mineral or mineral product mined in Manitoba from a mineral processing establishment is done in Manitoba by the operator in a fiscal year and the director has approved an allowance in that fiscal year under clause (3)⁠(a), the director shall approve for that fiscal year, by way of return on capital employed by the operator in respect of assets that were necessary to the servicing and management of the processing activities of the operator in that fiscal year but that are not processing assets, an additional allowance equal to 25% of the amount of the allowance approved under clause (3)⁠(a) for that fiscal year. Maximum processing allowance 10(5) Where for any fiscal year, other than a short fiscal year, allowances are approved under subsections (3), (4) and (6), the total of those allowances approved for that fiscal year under those subsections shall not be more than 65% of the profit of the operator in that fiscal year as calculated before the allowances under those subsections but after the deduction of all expenses, payments and allowances deductible under section 7. Processing allowance for out of province processing 10(6) Subject to subsections (5) and (7), where the processing of any mineral or mineral bearing product mined in Manitoba from a mineral processing establishment is done outside Manitoba by the operator in a fiscal year, the director may approve for the fiscal year in respect of those mineral products an allowance for processing by way of return on capital employed by the operator not exceeding an amount calculated in accordance with Formula 4 set out in the Schedule but in no case shall an allowance for processing be allowed where a processing allowance has been claimed or could be claimed by the operator under the mining tax or royalty Act of any other jurisdiction. Short fiscal year processing allowance 10(7) For a fiscal year that is a short fiscal year, the director may approve a processing allowance calculated in accordance with subsections (3), (4) and (6), multiplied by the number of days in the short fiscal year, and divided by 365 but the total of those allowances approved for that short fiscal year under those subsections shall not be more than 65% of the profit of the operator in that short fiscal year as calculated before the allowances under those subsections but after the deduction of all expenses, payments and allowances deductible under section 7. S.M. 1988-89, c. 19, s. 28 ; S.M. 1992, c. 52, s. 42 ; S.M. 1994, c. 23, s. 20 ; S.M. 2022, c. 45, s. 30 . Capital investment, interest and depletion not allowed 11(1) No allowance or deduction shall be allowed under section 7 (a) for capital invested; or (b) for interest; or (c) for dividends upon capital stock; or (d) for depreciation in the value of a mine, mining land or mining property, by reason of exhaustion or partial exhaustion of the ore or mineral; or (e) for moneys paid in acquiring the right to mine or an option to the right to mine; or (f) for that portion of an expenditure for which or based on which monies have been received in the form of a grant, subsidy or other assistance. Depreciation allowance in joint ventures 11(2) Notwithstanding the definition "depreciable assets" an allowance for depreciation may be allowed under section 7 where an operator invests in depreciable assets in order to acquire an interest in a mine where that operator is a member of a partnership, syndicate, or group of persons engaged in a joint venture in the operation of that mine. Depreciable assets of new mine or major expansion 11(2.1) Where an operator of a new mine or major expansion in the tax holiday period incurs expenditures for depreciable assets for that new mine or major expansion, a depreciation allowance for the fiscal year as calculated under clause 4.1(2)⁠(b), or as calculated under subsection 9(2) where the fiscal year is a short fiscal year, shall be allowed for all such depreciable assets provided that they (a) relate only to that new mine or major expansion; (b) are accounted for separately by the operator; and (c) are approved by the director. Undepreciated balance of new mine or major expansion assets 11(2.2) Where in a fiscal year the tax holiday period expires, the undepreciated balance of depreciable assets referred to in subsection (2.1) of the new mine or major expansion shall be added to the operator's undepreciated balance of depreciable assets referred to in clause 7(1)⁠(g) for the next following fiscal year. Deduction for exploration expenses in joint ventures 11(3) Notwithstanding the definition "exploration expenses" a deduction for exploration expenses may be allowed under section 7 where an operator incurs exploration expenses in order to acquire an interest in a mine where that operator is a member of a partnership, syndicate, or group of persons engaged in a joint venture in the operation of that mine. S.M. 1988-89, c. 19, s. 29 ; S.M. 1992, c. 52, s. 43 ; S.M. 2022, c. 45, s. 31 . Inter-provincial agreements to fix method of determining profit 12 Where an operator carries on mining or processing in Manitoba and in any other province, and the nature of the operator's establishment is such as to render it difficult or impossible to ascertain the profit of the operator for the purposes of calculating tax payable under this Act, or under similar legislation of that other province, the minister may, with the approval of the Lieutenant Governor in Council, enter into an agreement with the operator and the government of that other province, or a minister thereof, providing for the method of determining the profit, within each province; of the operator for any fiscal year that occurs while the agreement is in force, and where a provision of any such agreement is inconsistent with or repugnant to a provision of this Act, the provision of the agreement prevails. Imposition of tax 13(1) An operator of a mineral processing establishment in Manitoba must pay to the minister a tax for each fiscal year equal to (a) 10% of the operator's profit for the year, if the profit for the year is $50,000,000 or less; (b) $5,000,000 plus 65% of the operator's profit for the year in excess of $50,000,000, if the profit for the year is more than $50,000,000 and not more than $55,000,000; (c) 15% of the operator's profit for the year, if the profit for the year is more than $55,000,000 but not more than $100,000,000; (d) $15,000,000 plus 57% of the operator's profit for the year in excess of $100,000,000, if the profit for the year is more than $100,000,000 and not more than $105,000,000; or (e) 17% of the operator's profit for the year, if the profit for the year is more than $105,000,000. 13(2) [Repealed] S.M. 2025, c. 48, s. 28 . S.M. 1988-89, c. 19, s. 30 ; S.M. 1994, c. 23, s. 21 ; S.M. 1999, c. 3, s. 13 ; S.M. 2009, c. 26, s. 38 ; S.M. 2010, c. 29, s. 39 ; S.M. 2025, c. 48, s. 28 . 13.1 [Repealed] S.M. 1989-90, c. 15, s. 51 ; S.M. 1990-91, c. 13, s. 8 ; S.M. 1992, c. 52, s. 44 ; S.M. 1994, c. 23, s. 22 ; S.M. 2000, c. 39, s. 70 ; S.M. 2025, c. 48, s. 29 . Time for payment of tax 14(1) Every operator liable for payment of a tax for a fiscal year, other than for a short fiscal year, shall pay to the minister on account of the tax for that fiscal year (a) on or before the 25th day of each of the last 10 months in the fiscal year, an amount equal to (i) 1/10th of the tax payable by the operator for that fiscal year, as estimated by the operator based on the operator's estimated profit for that fiscal year, or (ii) 1/10th of the amount of tax paid or payable by the operator for the next previous fiscal year, or (iii) where the next previous fiscal year referred to in subclause (a)⁠(ii) was a short fiscal year, the amount of tax paid or payable by the operator for that next previous short fiscal year divided by the number of complete months in that short fiscal year; and (b) on or before the 25th day of the third month of the next following fiscal year, the remainder, if any, of the tax payable by the operator for that fiscal year as calculated under this Act. Time for payment of tax if short fiscal year 14(1.1) Every operator liable for payment of a tax for a short fiscal year shall pay to the minister on account of the tax for that short fiscal year (a) on or before the 25th day of each complete month in the short fiscal year, an amount equal to (i) the amount of tax payable by the operator for that short fiscal year as estimated by the operator, divided by the number of complete months in that short fiscal year, or (ii) the amount of tax paid or payable by the operator for the next previous fiscal year divided by 12; and (b) on or before the 25th day of the third month of the next following fiscal year, the remainder, if any, of the tax payable by the operator for that short fiscal year as calculated under this Act. 14(2) [Repealed] S.M. 2025, c. 48, s. 30 . S.M. 1989-90, c. 15, s. 52 ; S.M. 1990-91, c. 13, s. 9 ; S.M. 1992, c. 52, s. 45 ; S.M. 2010, c. 29, s. 40 ; S.M. 2025, c. 48, s. 30 . 15 to 21 [Repealed] S.M. 1988-89, c. 19, s. 31 and 32; S.M. 1992, c. 52, s. 46 ; S.M. 1998, c. 30, s. 33 and 34; S.M. 2002, c. 19, s. 41 ; S.M. 2003, c. 4, s. 55 and 56; S.M. 2004, c. 43, s. 59 ; S.M. 2005, c. 40, s. 49 . Filing of return 22(1) Every operator of a mineral processing establishment shall, without any demand therefor, on or before the last day of the sixth month following a fiscal year end file with the director an information return, in a form approved by the director, setting out all the information required by the form. Estimate of tax 22(2) Every operator filing a return under this Act shall, in the return, calculate the amount of tax payable by the operator for the fiscal year to which the return relates. 22(3) [Repealed] S.M. 2005, c. 40, s. 50 . S.M. 1992, c. 52, s. 47 ; S.M. 2003, c. 4, s. 57 ; S.M. 2005, c. 40, s. 50 ; S.M. 2006, c. 24, s. 50 ; S.M. 2010, c. 29, s. 41 . Unconsolidated financial statement 23 Each return filed under this Act by an operator shall be accompanied by audited unconsolidated financial statements of the operator and detailed statements of the operations of the operator indicating the expenses, revenues, assets, liabilities and any other details that may be required by the director allocated to the mineral processing establishment of the operator within Manitoba and to the operations of the operator outside Manitoba and the information contained in the detailed statements shall be reconciled with the unconsolidated financial statements. S.M. 2010, c. 29, s. 42 . 24 to 35 [Repealed] S.M. 1988-89, c. 19, s. 33 to 41; S.M. 1994, c. 23, s. 23 ; S.M. 1995, c. 30, s. 14 to 18; S.M. 1998, c. 30, s. 35 to 38; S.M. 2003, c. 4, s. 58 to 61; S.M. 2004, c. 43, s. 60 and 61; S.M. 2005, c. 40, s. 51 ; S.M. 2007, c. 6, s. 50 .

Notice of active operation 36(1) Every operator of a mineral processing establishment shall within 10 days after a mine is placed in operation for production of minerals or mineral products serve the director with a notice in writing setting out (a) the name and location of the mineral processing establishment; (b) a description of the processing carried on in the mineral processing establishment; (c) the location, name and a description of any mine operated as part of the mineral processing establishment; (d) the name and address of the operator; (e) the name and address of the manager of the mineral processing establishment or of some other person to whom notices required to be given under this Act or the regulations may be given; and (f) the date on which the mineral processing establishment was placed in operation; and shall notify the director in writing of any change in the information set out in the notice or any suspension or termination of operation of the mineral processing establishment. Notice of shipping 36(2) No operator shall ship, send, take or carry away or permit to be shipped, sent, taken or carried away, any mineral or mineral product from a mineral processing establishment before the notice required under subsection (1) relating to the mineral processing establishment is served on the director unless permission for the shipping, sending, taking or carrying away has been granted in writing by the director. 37 to 42 [Repealed] S.M. 1988-89, c. 19, s. 42 and 43; S.M. 2005, c. 40, s. 51 . Tax paid into Consolidated Fund 43 The moneys received by way of tax under this Act, shall be paid into the Consolidated Fund and shall be used as general revenues of the government. S.M. 2020, c. 21, s. 165 . 44 [Repealed] S.M. 1988-89, c. 19, s. 44 ; S.M. 1998, c. 12, s. 2 ; S.M. 2009, c. 26, s. 39 ; S.M. 2010, c. 29, s. 43 ; S.M. 2020, c. 21, s. 165 . 44.1 [Repealed] S.M. 1998, c. 30, s. 39 ; S.M. 2005, c. 40, s. 51 . Regulations 45(1) The Lieutenant Governor in Council may make regulations (a) prescribing information to be contained in, or filed in respect of, returns required under this Act; (b) prescribing the manner in which the detailed statements of an operator's operations to be filed under section 23 are to be reconciled with the operator's unconsolidated financial statements; (c) respecting any other matter the Lieutenant Governor in Council considers necessary or advisable for the purposes of this Act. Effective date 45(2) A regulation under this section may be made retroactive to the extent the Lieutenant Governor in Council considers it necessary in order to implement or give effect to (a) a tax or administrative measure included in a budget presented to the Legislative Assembly; or (b) an amendment to this Act. S.M. 1990-91, c. 13, s. 10 ; S.M. 2003, c. 4, s. 62 ; S.M. 2005, c. 40, s. 52 . 46 and 47 [Struck out] R.S.M. 1987 corr. SCHEDULE FORMULA 1 [Repealed] S.M. 1988-89, c. 19, s. 45 ; S.M. 1989-90, c. 90, s. 27 ; S.M. 1994, c. 23, s. 24 ; S.M. 2025, c. 48, s. 31 . FORMULA 1.1 [Repealed] S.M. 1994, c. 23, s. 24 ; S.M. 2025, c. 48, s. 31 . FORMULA 2 (Section 4) Profit for fiscal year = R − E In this formula R is the total of (a) the revenues of the operator in the fiscal year from the sale or disposal of mineral products that were mined within Manitoba, whether or not the output has been partially processed outside Manitoba; and (b) the revenues of the operator in the fiscal year as a result of the custom processing in Manitoba of mineral products originating from ore mined in Manitoba; and (c) the revenues from custom mining with respect to which expenses are deducted under subsection 7(1) of the Act; and E is the total of all expenses, payments and allowances that may be deducted as determined in accordance with sections 7 to 12. S.M. 1989-90, c. 15, s. 53 . FORMULA 3