On December 23, 2020, the mineral exploration industry received clarity from CRA on December 23 that taxpayers may file their tax returns based on proposed legislation extending the timelines for junior mineral exploration companies in spending the capital they raise via flow-through shares. The federal government had originally proposed the extension in a July 10 announcement. Industry organizations including AME requested this extension to ensure that companies had adequate time to spend flow-through financing in consideration of delays related to COVID-19.
Finance Canada published legislative proposals on December 16 and although this news was welcomed by industry, the Prospectors & Developers Association of Canada (PDAC) requested and received clarity that the draft legislation can be adopted by Canada Revenue Agency (CRA) until the legislative process is complete.
AME thanks PDAC for its continued advocacy on behalf of the mineral exploration and development community and to CRA, Finance Canada and Natural Resources Canada for their work in extending timelines for spending flow-through capital.