Subsection 1206(1)
Production Royalty
Administrative Policy
91 CPTJ - Q.26
RC will consider a net profits interest to be a production royalty where the recipient has a Crown royalty and it is reasonable to consider that the recipient would have had the Crown royalty if its only source of income had been a net profits interest.
Resource Activity
Administrative Policy
17 July 1997 Memorandum 7-970054 -
The disposal of machinery held in an inactive mining business would be considered as "activities that the taxpayer undertakes as a consequence of" the mine production/processing operation.