Fiscal Incentives: Updating Canadian Exploration Expenses

The Income Tax Act defines which expenditures, incurred by a company exploring in Canada, constitute ‘Canadian Exploration Expenses’ (CEE). These expenses are 100% deductible in the year in which they occur, whether claimed by a company or (via flow-through shares) by an investor. Since 2012, PDAC has undertaken advocacy in two key areas, to expand the scope of what is considered CEE and to establish a clear bright-line test to distinguish between CEE and Canadian Development Expenses (CDE).

Expanding the Scope of CEE

Including certain costs related to community consultation and environmental studies.

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Working with Canada Revenue Agency (CRA)

PDAC advocates for consistent rulings by CRA on what expenses are considered CEE.

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