Canadian Government to Broaden Canadian Exploration Expense and Extend Mineral Exploration Tax Credit
|Area||Environmental Law, Tax, Mining and Natural Resources|
On March 1, 2015, the Canadian Government announced that it would broaden the definition of Canadian exploration expenses and extend the availability of the mineral exploration tax credit. These changes are intended to support companies engaging in mineral exploration in Canada, and are most relevant to companies that issue flow-through shares and to their shareholders. Flow-through shares issued by a resource company allow the company to renounce or “flow through” to its shareholders certain expenses associated with the company’s Canadian exploration activities.