(December 7 – 16:45 ET) – The Ontario government will soon implement new tax breaks for flow-through shares to encourage mineral exploration.

Amendments to the Income Tax Act will be proposed to the Ontario legislature in the spring of 2001 to allow a tax credit of 5% of eligible Ontario expenses. On October 18, the federal government announced a 15% tax credit related to flow-through shares.

Legislation for the Ontario credit initiative will be effective October 18, to ensure that those who qualify for the federal tax credit would also be able to claim the new Ontario tax credit for the 2000 taxation year.

The flow-through plan was announced by Finance Minister Ernie Eves as part of his Fall 2000 Ontario Economic Outlook and Fiscal Review, and confirmed by Northern Development and Mines Minister Tim Hudak, “The proposal was intended to improve access to capital for small exploration companies and stimulate exploration in Ontario.”

“The Ontario government has been very supportive of my association’s efforts to lobby for the creation of tax shelters that benefit investors in junior mine exploration share issues,” said David Comba, director of Issues Management for the Prospectors and Developers Association of Canada. “We are pleased that Ontario has harmonized their proposed tax incentive with that created by the federal government in October.”
-IE Staff