Flow Through Shares

A flow‐through share (FTS) is a share, or the right to buy a share, of the stock of a mineral resource company where tax deductions “flow through” from the company to the investor. A flow‐through share is issued under a written agreement between a corporation and an individual. Under the agreement, the individual agrees to pay for the shares, and the corporation agrees to transfer certain mining expenditures to the individual. Flow-through shares were originally introduced to address an exploration financing inequity which arose between major and junior exploration companies. FTS investors can deduct their investments from otherwise taxable income. Continued+

AME BC Update

 
On March 2, 2010, the province of British Columbia introduced legislation to extend the mining flow-through share tax credit (MFTS) to the end of 2013.

Please see the BC Ministry of Finance bulletin Bulletin PIT 001, British Columbia Mining Flow-Through Share Tax Credit, for details.

On March 2, the federal government introduced a similar provision to extend the Mineral Exploration Tax Credit for flow-through investors through March 31, 2011. British Columbia’s tax incentives for mineral exploration are targeted at both individual investors and corporations alike.