PricewaterhouseCoopersâ€™ biennial guide to Canadian mining taxation,Â Digging Deeper,Â features a comparative summary of royalties, mining taxes and corporate taxes for a hypothetical gold mine.
This approach differs from the table I posted yesterday, which displayed royalty and mining tax revenue as a share of the minerals actually extracted from different provinces and territories in 2010.
However, the conclusion is the same: Ontario collects the lowest return. In PricewaterhouseCoopersâ€™ scenario, the Ontario government would collect only 13.5% of the mineâ€™s profits.
The royalty and tax regimes of ten other provinces and territories would collect between 19.1% and 28.6% of profits from the same mine. (PricewaterhouseCoopers excludes Alberta and PEI, which have no operating metallic mines.)
Given that the gold reserves being mined belong to the people of Ontario, 13.5% of profits is a shabby provincial return. And gold seems like a pretty fair basis for comparisonÂ since it is Ontarioâ€™s most valuable mineral.
- A Response to the 2017 Saskatchewan Budget (April 23rd, 2017)
- Poverty Reduction in Alberta (February 17th, 2017)
- The Federal Role in Poverty Reduction (February 8th, 2017)
- Ten things to know about the 2016-17 Alberta budget (May 3rd, 2016)
- Dix choses Ã savoir sur les dÃ©fis associÃ©s avec mettre fin Ã l’itinÃ©rance au Canada (December 8th, 2015)