https://newsletter.mw.creamermedia.com
Africa|Exploration|fasken|Flow|Gas|Mining|Oil And Gas|Oil-and-gas|Flow
Africa|Exploration|fasken|Flow|Gas|Mining|Oil And Gas|Oil-and-gas|Flow
africa|exploration|fasken|flow-company|gas|mining|oil-and-gas|oilandgas|flow-industry-term

Fasken helps junior mining desk with flow-through shares submission to govt

20th July 2020

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

Mining law firm Fasken is helping the Minerals Council South Africa’s Junior and Emerging Miners' Desk compile a submission to the National Treasury regarding the introduction of a local tax incentive.

The local tax incentive is based on the Canadian flow-through shares (FTS) model, proposing tax incentives for purchases of equity in entities undertaking exploration activities.

The Fasken team includes corporate and commercial partner Dimitri Cavvadas and tax partner Conor McFadden, who are collaborating with the Junior and Emerging Miners’ Desk as part of an ongoing initiative to understand and unpack tax incentives and opportunities for the South African mining sector based on the Canadian FTS principle.

Canada’s tax code allows the use of flow-through shares for mining and oil and gas companies on the assumption that they are a good way to spur new productive exploration.

An 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.

Edited by renay de

Comments

Latest News

Ramelius sets sights on 500 000 oz/y with Spartan merger
Ramelius sets sights on 500 000 oz/y with Spartan merger
Updated 19 minutes ago By: Mariaan Webb

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (14/03/2025)
14th March 2025 By: Martin Creamer
Magazine round up | 14 March 2025
Magazine round up | 14 March 2025
14th March 2025

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.151 0.23s - 127pq - 2rq
Subscribe Now