The measure will be effective on June 25. The government could consider amendments.
Mining, oil and gas exploration companies listed on the TSX Venture Exchange have raised funds by issuing flow-through shares, at a premium to the trading price, that allow high net-worth buyers to take tax deductions renounced by issuers.
The minimum flow-through investment is C$250,000.
“The increase in the inclusion rate on capital gains has been characterized as ‘a tax on the rich,’ but it is in fact a tax hike on investing in Canada that will serve as yet another barrier to economic growth,” said John McKenzie, CEO of TMX Group, parent of the Toronto Stock Exchange.
Flow-through shares account for 65% of all funds raised in Canadian stock exchanges by exploration mining companies, said the Prospectors and Developers Association of Canada, a mining lobby group.
In 2023 junior mining companies, which are still in the exploration…
