The Newfoundland and Labrador Regulation 23/24, also known as the Revenue Administration Regulations (Amendment) under the authority of the Revenue Administration Act introduces changes designed to improve revenue collection and administration practices within the province.

The amendments refined definitions related to “processing” and “processing assets.” The updated regulations clarify that processing refers specifically to activities involving the beneficiation of mineral ores, excluding smelting. Furthermore, the term “processing assets” now explicitly includes certain property types utilized in processing while excluding others used for primary crushing or mineral transportation, ensuring clarity in tax applicability.

The regulations stipulate that specific operators, including those with mining leases or those due payments under the Act, must file annual tax returns regardless of whether tax is owed. Each operator must submit a separate return for each mine or lease held, thereby reinforcing accountability in reporting. The amendment also incorporates explicit references to “diesel grade” within the context of tax-exempt gasoline, aligning terminology with operational practices and ensuring clarity regarding tax exemptions for diesel fuel.

A new section, Part V.01, establishes general preconditions for the issuance, renewal, or reinstatement of licenses and permits. Applicants are required to fully pay all due taxes and remittances and file all necessary documents under the Act, ensuring compliance before operational permissions are granted.

Several sections related to surety bonds have also been amended to clarify the conditions under which these bonds may be applied. If a tax collector fails to fulfill their obligations, the minister has the authority to apply the bond to cover any outstanding amounts due to the Crown. Conversely, bonds may be returned to collectors who cease operations without outstanding liabilities. Changes to regulations regarding depreciation expenses for assets used in mining or processing require these expenses to be adjusted based on the asset’s use across multiple mines.

Moreover, the regulation now specifies particular types of insurance that qualify for exemptions, including marine insurance on commercial watercraft, which is essential for operators involved in shipping and transportation, both of which are vital to the province’s economy. The amendments also improve security requirements, mandating that security measures be in place to safeguard against tax non-compliance and potential financial losses to the Crown.

By refining definitions, implementing stringent conditions for licenses and permits, and clarifying tax obligations, the government aims to establish a more structured and accountable framework for resource management.

Newfoundland and Labrador (23/24) April 18, 2024