Flow-Through Shares

To promote mining in Canada, the federal government has made available certain tax deductions for investments in this sector.  To encourage the exploration and development of Canadian natural resources, the government allows Canadian natural resource companies to issue common shares that entitle the holder to certain tax benefits.  These shares are called flow-through shares.

Flow-Through shares are an increasingly popular investment among sophisticated investors seeking to minimize their taxes.  They remain one of the few legitimate tax shelters available to Canadians and can offer investors an equivalent tax deduction of up to 140% of their initial investment.  Flow-Through share tax deductions are compliant with CRA regulations and are ideal for investors who meet any of the below criteria:

• Are high income earning
• Wish to withdraw funds from a RRSP/RRIF in a tax-effective manner
• Are faced with a high current or past tax bill
• Want to donate to a charity at virtually no cost