Mining industry confident of carve out on federal government’s capital-gains tax changes – by Niall McGee (Globe and Mail – June 12, 2024)

The Canadian mining industry is optimistic that Ottawa will carve out an exception for the sector around coming changes to the capital-gains tax that it hopes will pre-empt a large drop in financings.

As of June 25, capital gains made by Canadian investors are set to be taxed at two thirds, up from one half, for gains above $250,000. Owing to a tax quirk associated when selling flow-through shares, the pending changes will deter high-net-worth individuals from investing in the mining sector, according to Pierre Gratton, president of the Mining Association of Canada.

But Mr. Gratton said the latest language coming out of Ottawa is encouraging. When Finance Minister Chrystia Freeland tabled a notice of ways and means motion for the capital-gains tax changes in Parliament on Monday, the federal government also said it intends to provide more information to ensure Canada’s mining exploration companies can thrive.

“They’re going to do something. We just don’t know what yet,” Mr. Gratton said of the release.

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