Implementation Plan for the Sahtu Dene and Metis Comprehensive ...

ANNEX APlanning Assumptions:- Royalties will be paid quarterly based on the amount actually received by government in the previousquarter.- Mining royalties are received not later than 10 months after the end of a mine's fiscal year end(usually during October, since most mines use December 31 as year end). Therefore, where miningroyalties for 1993 are received in October, 1994, the payment to the STC will be made during thequarterly payment which follows the receipt of the payment.- If, after an audit conducted by DIAND, government receives additional royalties the payment to theSTC will be calculated and paid on the basis of the year for which those royalties were due (i.e. if anaudit in 1995 finds an amount due to government for 1993 the payment to the SPC will be calculatedon the basis that the payment is for 1993). Under current legislation, government is not paid intereston late or overdue payments of royalties by producers and in such cases government will not payinterest to the STC. If in the future government receives interest in such situations, any such receiptswill be considered as amounts due to and received by government and the STC will receive theappropriate amounts. Nothing in this paragraph is intended to prevent any proper claims for interestby the STC in other cases.- If, after an audit, DIAND owes a refund to a company, the appropriate percentage will be deductedfrom the next quarterly payment to the STC based on the royalties received for the year for which therefund was owed.- When asked to verify the accuracy of the information in the annual statements, the Auditor-Generalwill verify whether the figures used (i.e. amounts of royalty received by the Crown, calculation of theSTC share) are correct.- In the case of royalties being received for a period which straddles the year for which the STC shareis paid, or in the case of a partial year after settlement legislation, the royalties will be apportioned ona prorated basis (i.e. based on days in the period for which the royalty was paid).SAHTU IMPLEMENTATION PLAN 32