Flow-through shares

An overview for mining executives

A flow-through share (FTS) is a tax-based financing incentive that is available to, among others, the mining sector. A FTS is a type of share issued by a corporation to a taxpayer, pursuant to an agreement with the corporation under which the issuing corporation agrees to incur eligible exploration expenses in an amount up to the consideration paid by the taxpayer for the shares.

The corporation “renounces” to the taxpayer an amount in respect of the expenditures so that the exploration and development expenses are considered to be the taxpayer’s expenses for tax purposes. As a result of the corporation renouncing the expenses, the shareholder can deduct the expenses as if incurred directly.

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Garry Eng
Tel: +1 604 806 7037

Liam Fitzgerald
Partner, National Mining and Metals Leader
Tel: +1 416 869 2601

René Albert
Tel: +1 514 205 5077

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