New British Columbia mining tax

"Effective January 1, 1990, mines in British Columbia are subject to a new provincial mining tax statute, the Mineral Tax Act. Under this Act, mines are subject to a two-tier tax system, with a minimum tax payable on ""net current proceeds"" and a higher tax paid on net income. For many mines, the present value of tax paid under the new rules should be comparable to the amount paid under the old rules. Earlier cash payments could pose difficulties, particularly for smaller mines, but existing producing mines could benefit in the short-term.IntroductionEffective January 1, 1990, British Columbia has replaced the provincial mining tax regime under the Mineral Resources Tax Act with a new system under the Mineral Tax Act. The new rules borrow some ideas from other provinces (New Brunswick's two-tier concept, and Saskatchewan's indexed costs) with a view to levying a tax that is fairer to both the producer and the province."