Ontario Focused Flow-Through Share Tax Credit

By mmuise
Description:

Ontario Focused Flow-Through Share Tax Credit is a refundable tax credit available to investors who have invested money in flow-through shares. A flow-through share is a type of investment, which takes place when individuals invest money in a corporation that agrees to spend their money on mining exploration in Ontario.


Comments on Funding:

The amount of the credit is 5% of the applicant's share of the eligible Ontario exploration expenses incurred during the tax year.
The amount the applicant receives depends on the:
1. number of shares purchased from a mining corporation;
2. cost per share.

Deadline: Rolling deadline
Eligibility:

The applicants must:

  • have lived in Ontario on the last day of the tax year they are filing a return for;
  • have purchased eligible flow-through shares:
    a) after October 17, 2000;
    b) from a corporation that is permanently established in Ontario.
Application Steps:

Applicants must file their personal income tax and benefit return, even if they don't have any income to report, along the supporting documentation. If they file electronically, they must keep all the documents in case the Canada Revenue Agency requests them at a later date.

Documentation Needed:

Applicants must submit:
1. the personal income tax and benefit return;
2. the Ontario Credits form (ON479);
3. the Ontario Focused Flow-Through Share Resource Expenses (Individuals) form (T1221);
4. the credit certification documents they received from the mining exploration company. The certification documents should include either a:
a) statement of Partnership Income (T5013);
b) statement of Resource Expenses (T101).

Other Things to Note:

Tax credit for individual investors / shareholders, not for businesses. I added it here considering it would be of interest for entrepreneurs (shareholders) - the people behind the business.

Updated: November 02, 2023

About the author
mmuise