Ontario Focused Flow -Through Share Tax Credit

Overview of the Ontario Focused Flow -Through Share Tax Credit program:

A flow-through share is a type of investment. It takes place when you invest money in a corporation that agrees to spend your money on mining exploration in Ontario. In exchange for your investment, you receive a share. This is a portion of ownership in that corporation. Once mining exploration happens, the corporation transfers its exploration expenses to you, the shareholder. You can claim 5% of those expenses as a refundable tax credit on your personal Income Tax and Benefit Return.

Benefits of the Ontario Focused Flow -Through Share Tax Credit program:

• Provides eligible individual shareholders a refundable tax credit of 5 percent of eligible Ontario expenses. Credit may be applied to reduce Ontario tax payable and any amount not used to offset tax payable will be refunded to the individual.

Eligibility criteria of the Ontario Focused Flow -Through Share Tax Credit program:

• You qualify for the credit if you lived in Ontario on the last day of the tax year you're filing a return for and you purchased eligible flow-through shares:
• After October 17, 2000
• From a corporation that is permanently established in Ontario
• Eligible mining exploration expenses must result from mining exploration activities required to determine the existence, location, extent, or quality of a mineral resource in Ontario. This includes:
• Environmental studies or community consultations
• Prospecting
• Geological, geophysical, or geochemical surveys
• Drilling by rotary, diamond, percussion or other methods
• You can't claim expenses for an existing mine, including potential or actual extensions of that mine.