CANADA Law and Practice Contributed by: Darrell Podowski, Brian Dominique, Joel Matson and Christa Alvernaz, Cassels Brock & Blackwell LLP
2024, two thirds of any capital gain is included in income. The disposition of mining assets may result in income (in the case of resource prop - erty), recapture (in the case of depreciable prop - erty) and capital gains on capital property. Non-residents are subject to tax in Canada on the disposition of “taxable Canadian property”, which includes: • real property and resource property situated in Canada; • property used by the taxpayer in certain busi - nesses carried on in Canada; and • certain shares and partnership or trust inter - ests that derive their value from real property or resource properties situated in Canada. Most provinces impose land transfer taxes on transfers of real property. The rates of land transfer tax vary by province, and transfers of resource properties are often exempt from this tax. 5. Mining Investment and Finance 5.1 Attracting Investment for Mining Canada consistently ranks highly in world min - ing surveys for investment attractiveness. The Fraser Institute Annual Survey of Mining Compa - nies 2023 ranked Canada the third most attrac - tive region in the world for investment. Canada attracts considerable investment in the mining industry due to its favourable combina - tion of: • rich geology, with a track record of mineral discoveries in numerous commodities; • a stable legal and political system;
• a high concentration of specialised profes - sionals that service the mining industry; • mining-specific and pro-investment tax incen - tives; and • securities regulators and stock exchanges that are friendly to the mining industry. 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors In general, investment in a Canadian mining enterprise may require pre-closing approval under the Investment Canada Act (ICA), under which the federal government reviews foreign acquisitions of control of Canadian businesses above certain monetary thresholds. The review threshold ultimately depends on the transacting parties and whether a trade agreement exists between the non-Canadian party’s country and Canada (eg, the United States, European Union member states, the United Kingdom and Mexi - co). As of December 2024, the monetary thresh - olds are as follows: • CAD1.989 billion in enterprise value for trade agreement investors that are not state-owned enterprises and non-trade agreement inves - tors that are not state-owned enterprises where the Canadian business is, immediately prior to the investment, controlled by a trade agreement investor; • CAD1.326 billion in enterprise value for World Trade Organization (WTO) investors that are not state-owned enterprises and non-WTO investors that are not state-owned enterprises where the Canadian business is, immediately prior to the investment, controlled by a WTO investor; • CAD528 million in asset value for WTO state-owned enterprises (SOE) and non-WTO investors that are state-owned enterprises where the Canadian business is, immediately
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