Alternatives to flow-through

CIM Bulletin, Vol. 81, No. 910, 1988

ROBERT B. PARSONS, Partner Price Waterhouse, Toronto

It is generally felt that flow-through shares face a bleak future under the set of tax rules proposed in the federal government's tax reform white paper. Industry and government circles are beginning to give thought to alternatives to flow-through as a mechanism for facilitating equity financing in the exploration industry. Despite suggestions that grants and tax credits may someday be on the table, industry is sticking to its position that there is no substitute for flow-through.