Mining companies in Quebec face one of the highest tax burdens in Canada
MONTREAL, Sept. 7, 2011 /CNW/ - An independent study conducted by PwC on provincial taxation of mining companies in Canada reveals that nearly 41% of mining profits in Quebec are paid as taxes and royalties, including the federal component, while the Canadian weighted average based on the value of output is 36.8%. Quebec ranked 11th back in 2007, when it was the lowest taxing province; today, it ranks third.
"Amid the ongoing lively debate over mining company taxation in Quebec, a number of the study's conclusions are relevant when it comes to taking a new look at Quebec's tax regime, particularly income tax and the mining tax", said Nochane Rousseau, Leader‚ Mining Industry Services and PwC's Plan Nord Initiative.
- In Canada, the overall tax burden (combined federal/provincial) in all jurisdictions fell between 2007 and 2011 (going from weighted average based on the value of output of 40.7% to 36.8%), with the exception of Quebec, where it rose from 35.4% to 40.9%.
- In Quebec, 41% of mining profits are paid as taxes and royalties, including the federal component. Quebec has the third-highest overall tax burden (combined provincial/federal) in Canada.
- Among the four main mineral-producing provinces, (Saskatchewan, British Columbia, Ontario and Quebec), Quebec places the highest tax burden on mining companies.
- As regards the provincial tax burden, Quebec rose from 11th place (16.7%) in 2007 to fourth place (25.9%) in 2011.
- Quebec levies the second highest mining duties over a mine's useful life.
Putting things in perspective, Mr. Rousseau said: "The review of Quebec's mining duties regime has had a significant impact on companies' tax burdens. Quebec's mining taxes are now among the highest in Canada. The mining duties collected by the provincial government over a mine's useful life are also among the highest. We believe that the results of this study, which takes an objective and independent look at the topic, deserve to reach a wider audience."
The study summarizes the main features of tax regimes in Canada as they pertain to income taxes and mining taxes. Quantitative examples are provided to illustrate how these regimes are applied. The study also includes all of the tax policies affecting mining companies:
- Federal income tax
- Provincial income tax
- Provincial capital tax
- Provincial mining tax, including the recent changes to Quebec's mining duties regime.
For further information on the study's conclusions, please consult the Industries/Mining section of PwC's website (www.pwc.com/ca) or download the study.
Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at http://www.facebook.com/pwccanada.
About PricewaterhouseCoopers LLP/s.r.l./s.e.n.c.r.l.
PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP, an Ontario limited liability partnership, and its related entities have more than 5,700 partners and staff in offices across the country. See www.pwc.com/ca for more information.
"PwC" is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.
"PwC" refers to the Canadian firm of PricewaterhouseCoopers LLP/s.r.l./s.e.n.c.r.l. and the other member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
For further information:
| Please contact || Olivia Boucherie |
Phone: (514) 205-5335 begin_of_the_skype_highlighting (514) 205-5335 end_of_the_skype_highlighting
Phone: (416) 947-8983 begin_of_the_skype_highlighting (416) 947-8983 end_of_the_skype_highlighting