flow-through
investing
Canadian companies in mining, oil & gas and renewable energy sectors require financing for exploration and development of their projects. Certain resource companies offer flow-through shares to accredited investors as a tax incentive investment. The credits from exploration expenses get renounced to the investor from the issuer. Purchasers of flow-through shares will receive up to 70% of their investment in tax credits, thus creating a tax advantaged product. The exact percentage varies by province.
advantages of flow-through
investments
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Investors can receive up to 70% of their Flow-Through investment in tax credits.
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Flow-Through shares are recognized by Canada Revenue Agency as a mean of bringing capital to the natural resource sector.
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An available tax advantaged investment product while most tax shelters have been eliminated.
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Preferential tax treatment as Flow-Through profits are taxed as capital gains.
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Unique investment in an Accredited Investor's diversified portfolio.