Canada extends and broadens tax credits to aid companiesStaff writer ▼ | March 3, 2015
The Canadian government outlined plans to extend for a year exploration tax credits offered to miners and broaden the scope of the credits, in an attempt to boost the sector.
New move from Canada Helping smaller miners
"We are extending the mineral exploration tax credit to provide junior mining companies access to the venture capital they need," said Finance Minister Joe Oliver.
Canada is extending the 15 percent tax credit for investors in flow-through shares for an additional year, until March 31, 2016. Flow-through shares, which can only be issued to finance a company's exploration efforts, allow early stage miners to pass on a tax credit to investors that buy them. The government said since 2006, the credit has helped juniors raise more than C$5.5 billion ($4.4 billion) for exploration.
The government also said it plans to amend the law to ensure that costs associated with undertaking environmental studies and community consultations, required to obtain exploration permits, will now be eligible for treatment as exploration expenses. This would make them deductible for tax purposes and allow miners to also fund these costs via the issuance of flow-through shares. ■