The problem of rate setting for mineral losses in primary processing: Revisited
batable and require negotiating of some points and problem solution in the process of implementation. The practice of the Central Committee for Solid Mineral Deposit Development in 2006-2012 proves that one of the most sensitive problems is the one concerning the rate setting for mineral losses in primary processing of the mineral output, as well as methods and procedures for accounting of such losses for mineral output taxation purpose, in particular, grounds for the setting of the mineral production tax (MPT) zero rate for this kind of losses. According to the Tax Law of the Russian Federation (Chapter 26) the MPT assessment is based on the size of mineral output. In this case, the kinds of minerals stated therein by many points do not coincide with minerals covered by the Mineral Law. This predetermines the application of radically differing approaches to the assessment of the size of mineral output. Due to that and some other contradictions of the Mineral and Tax Laws regarding some minerals, primarily, noble metals and precious stones, the parties concerned (mining companies, tax authorities, regulatory bodies) still have a fundamentally different understanding of an opportunity of adding the mineral losses in primary processing (the so-called mineral processing losses) to mineral losses in mining, and opportunity of MPT zero rate setting for this kind of losses. Numerous enquiries on the lawfulness of adding mineral losses in primary processing to mineral losses in mining submitted to the Rosnedra Central Committee for Solid Mineral Deposit Development by mining companies and tax inspectorates of different levels of the Federal Tax Authority prove the fact that the problem does exist and stand unsolved. More than once, the Rosnedra Central Committee for Solid Mineral Deposit Development expressed the opinion on mineral losses in primary processing that cannot and should not be viewed as a constituent of mineral losses in mining. The fact that mining companies and tax authorities are still not able to reconcile their opinions on this problem makes the author revert to it once again.