PREFERENTIAL TAXATION OF THE NATURAL RESOURCES INDUSTRIES IN CANADA

Abstract

Most industrial taxpayers pay approximately one-half their net income to the government each year. The natural resources industries, however, are entitled to a perennial percentage deduction from net income before computation of tax. This article outlines the legal history of this and other advantages granted by Canadian income tax legislation. The focus of discussion pertaining to the period between 1917 and 1946 is on departmental administration in the absence of stable regulation. From 1946 onward, the focus is on official directives and regulations issued in conformity with the policy resulting in the abolition of ministerial discretion.