Up, Up, and away…

"Ontario and Quebec taxpayers will have to dig deeper into their pockets to pay more tax, according to budget papers tabled in these provinces in May 1993. Individuals will be hardest hit, but corporations will also have to ante up in the face of higher rates, reduced deductions, and new taxes.Up, up, and away...Somewhere in the bleak picture of the 1993 Quebec and Ontario budgets, there is a bit of good news for the mining industry.Careful scrutiny reveals:• Ontario will correct a capital tax provision which inadvertently penalizes flow through share issuers;• Quebec's flow-through incentives will be extended to December 31, 1995; and • both Quebec and Ontario will allow deductions for mine site reclamation payments.The industry may also find some comfort in the fact that Ontario's new corporate minimum tax will be profit-based (unlike the federal minimum tax), so that non-producers should not face a liability for this tax. There is some concern though, about Quebec's announcement that the refundable credit mechanism in the Mining Duties Act will be reviewed."