[credit provider=”Las Vegas Sun” url=”http://www.lasvegassun.com/news/2011/apr/17/mining-industry-acknowledges-questionable-tax-dedu/”]
Nevada mines have routinely claimed illegal tax deductions, including money paid to the World Gold Council, according to a letter from Nevada Mining Association President Tim Crowley.State law allows for the deduction of any expense that relates to the removal of gold ore from the ground and the processing of that ore into a marketable product. But in a letter from Crowley to state tax director Chris Nielsen, obtained by The Las Vegas Sun, Crowley lists:
“Deductions not mentioned by NRS 362 but allowed by the commission:
- Employee housing
- Corporate/regional costs
- World Gold Council — Current estimates allow the deduction of 90% of these fees as Marketing, but some would question if that is accurate anymore and it is hard to fathom that was the intent when the statute was written many years ago.”
“Deductions not mentioned in NRS 362 or the Regulations:
- Miscellaneous travel…
- Severance — The cost of severing employees is generally an optional cost and has little to do with the current minerals being extracted.”
None of these are allowable deductions by Nevada state law and neither Crowley or Nielsen could explain why those allowances were permitted, the Sun reports.
The Nevada Tax Commission is expected to rule on Monday whether to consider legislation ending these deductions, and further cutting up to two-thirds of the mining industries exemptions.