The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Canada's Department of Finance March 1 reported two mining-sector changes to the Income Tax Act (Canada).
In a speech to the Prospectors & Developers Association of Canada, Finance Minister Joe Oliver and Natural Resources Minister Greg Rickford said the federal government proposes to extend the 15 percent mineral exploration tax credit for investors in flow-through shares to March 31, 2016.
The credit was scheduled to expire on March 31, 2015.
The department of finance said the mineral tax credit will support the efforts of junior mineral exploration companies.
The government says this credit, referred to as the "lifeblood" of junior mineral exploration, has helped keep investment flowing.
The Canadian government also announced proposed changes to ensure that the costs associated with undertaking environmental studies and community consultations that are required in order to obtain an exploration permit will now be eligible for treatment as Canadian exploration expenses.
As CEE, these costs would be immediately deductible for tax purposes and also be eligible for flow-through share treatment.
In the case of eligible projects, they could qualify as well for the mineral exploration tax credit.
In the past, environmental studies and community consultations required to pursue an exploration project were not always eligible for CEE treatment.
Canadians pride themselves on our country's strong environmental protections, and meaningful consultation with local residents remains a key plank in Canada's Responsible Resource Development plan.
The government recognizes that the associated cost of these requirements is part of doing business in Canada, and it says these changes aim to make Canada an even better place to do business.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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