December 18, 2020
Canada's Department of Finance releases legislative proposals regarding time extension to incur flow-through qualifying expenditures
Canada's Department of Finance released draft legislative proposals on December 16, to implement the previously announced measures aimed at extending the timelines for resource corporations to incur eligible expenses by 12 months. The legislative proposals follow on from the Department's July 10 announcement concerning the flow-through share rules in order to alleviate the challenges faced by exploration companies in the mining industry amid the COVID-19 pandemic. The proposals mean that resource companies who have issued flow-through shares would be allowed additional time to incur eligible expenses.
A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.
Full text of Tax Alert