Canadian junior mining companies can breathe a sigh of relief as Budget 2016 extends a tax break for exploration companies that finance their exploration using so-called “flow-through” shares.
The federal government has extended the 15 per cent mineral exploration tax credit, which was slated to expire on March 31, until the end of March 2017.
“Given this is a challenging time for junior mining companies, the government proposes to support their mineral exploration efforts by extending the credit for an additional year,” the budget documents state.
Flow-through shares allow individual taxpayers to book their share of a company’s exploration expenses as credits against their personal incomes.
Junior exploration companies tend to have little or no revenue, so they’re usually content to “renounce” their claim to exploration expenses.
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