OTCPK:PGMFF - Post by User
Post by
lumpy13on May 20, 2020 2:33pm
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Post# 31052495
Flow through shares explained
Flow through shares explained A flow-through share (FTS) is a tax-based financing incentive that is available to, among others, the mining sector. A FTS is a type of share issued by a corporation to a taxpayer, pursuant to an agreement with the corporation under which the issuing corporation agrees to incur eligible exploration expenses in an amount up to the consideration paid by the taxpayer for the shares.
The corporation “renounces” to the taxpayer an amount in respect of the expenditures so that the exploration and development expenses are considered to be the taxpayer’s expenses for tax purposes. As a result of the corporation renouncing the expenses, the shareholder can deduct the expenses as if incurred directly.
A fuller definition is linked below:
https://miningtaxcanada.com/flow-through-shares/