March 25, 2015
Two pieces of good tax news were given to those in attendance at the Prospectors & Developers Association of Canada conference held this month in Toronto.
First, the federal Ministers of Finance and Natural Resources announced that the government will propose to extend the 15% Mineral Exploration Tax Credit for investors in flow-through shares for an additional year, until March 31, 2016. The credit was scheduled to expire on March 31, 2015. This extension has become an annual tradition, as the government has taken the approach of renewing the Mineral Exploration Tax Credit each year rather than making it a permanent part of the Income Tax Act. The credit is available with respect to “grass roots” exploration expenses incurred in Canada by mining companies. It has proven to be an important incentive in raising capital through the issuance of flow-through shares by junior resource companies.
Second, the federal government is proposing to amend the definition of Canadian...
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