Canadian Mineral Taxation A Brief Perspective

CIM Bulletin, Vol. 71, No. 793, 1978

R. D. Brown, F.C.A., Price Water-house & Co., Toronto, Ontario

"When elephants fight, it's the grass that gets trampled". It is becoming increasingly evident that the federal and provincial governments are awakening to the fact that their vigorous scramble for a "fair share" of mineral revenues which kicked off in 1974 has done considerable harm to the Canadian mining industry. Recent public statements made by government officials, particularly at the recently held annual convention of the Prospectors and Developers Association, would indicate that there is a general consensus in the government sector that changes must be made to the mining tax system. However, there is no evidence as yet that there is any agreement among the various governments as to what form these changes should take, who should make them, or when. It would seem to be worthwhile at this time to reflect on where the Canadian mining industry has been vis-a-vis taxes and "where it is at". This article is based on a recent address given by R. D. Brown, of Price Waterhouse & Co., Toronto, at the annual convention of the American Institute of Mining, Metallurgical and Petroleum Engineers in Denver, Colorado.