New Measures to Support Canadian Mining

From Finance Canada website:

“The Government proposes 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. The Mineral Exploration Tax Credit—referred to as the “lifeblood” of junior mineral exploration—will support the mineral exploration efforts of junior exploration companies. During a challenging global economy, in the struggle to secure capital, it has helped keep investment flowing.

The Government also announced proposed changes to ensure that the costs associated with undertaking environmental studies and community consultations that are required in order to obtain an exploration permit will now be eligible for treatment as Canadian Exploration Expenses (CEE). As CEE, these costs would be immediately deductible for tax purposes and also be eligible for flow-through share treatment.  In the case of eligible projects, they could qualify as well for the 15% Mineral Exploration Tax Credit.”

See the complete Finance Canada release here.

See also:

Backgrounder  Canadian Exploration Expense Treatment of Environmental Studies and Community Consultations

Backgrounder – Mineral Exploration Tax Credit for Flow-Through Share Investors

Robert Robillard, CPA, CGA, MBA, M.Sc. Econ.
Senior Partner, DRTP Consulting Inc.
514-742-8086; robertrobillard “at”

DRTP Consulting Inc. solutions go beyond transfer pricing and international tax solutions. The information in this blog post is general information only. Data and information come from sources believed to be reliable but complete accuracy cannot be guaranteed. DRTP Consulting Inc. or the author are not responsible or liable for any error, omission or inaccuracy in such information. The opinions expressed in this blogpost are those of the author. Readers should seek advice and counsel from DRTP Consulting Inc. as required.

Posted by drtp On 3 March 2015