New flow-through share rules are here

CIM Bulletin, Vol. 80, No. 897, 1987

ROBERT B. PARSONS, C.A., Partner, Price Waterhouse, Toronto, Ontario

At last the legal red tape which has tied up flow-through share financing has been cut. New rules effective for deals signed after 1986 simplify flow-through financing by removing the necessity for cumbersome agency relationships. But there is no free lunch—the new rules require increased government reporting. And beware— federal tax reform promises to have a good look at the new flow-through share rules.