The following is a summary of certain fundamental tax measures
contained in the Canadian federal government's budget
("Budget 2014") released on February 11, 2014.
MINING AND ENERGY SECTOR
Budget 2014 contains little in the way of incentives or other
measures specifically targeted to the mining and energy sectors,
although certain of the more general business and international tax
measures discussed below may be relevant.
Flow-Through Shares: Extension of the Mineral Exploration
Tax Credit ("METC")
Flow-through shares provide a major source of new capital to
junior mining companies. These shares are attractive to investors
for various reasons, including (i) the ability to deduct at the
investor-level certain exploration expenses incurred and renounced
by the issuing corporation; and (ii) the ability in certain
circumstances to claim a special 15% METC in respect of the
investment in the share. The existing METC is scheduled to expire
at the end of March, 2014;
