Flow-Through LPs are unique investment vehicles raising capital for Canadian energy and mining companies while “flowing through” eligible government tax deductions for investors.
Authorized by the Government of Canada, and an opportunity for additional federal and provincial tax credits for investments in mining companies, flow-through LPs allow Canadian energy and mining companies to raise capital by issuing flow-through shares while allowing investors to benefit from the flow-through tax deductions.
We establish a flow-through LP and our portfolio manager invests in flow-through shares of resource companies. Resource companies use the capital to incur eligible expenses:
- Canadian Exploration Expenses (CEE) and/or
- Canadian Development Expenses (CDE) from investments in the oil and natural gas sector
CEE is 100% tax deductible and CDE is 100% deductible on a 30% declining balance tax deduction basis. Resource companies “flow through” these eligible expenses to the flow-through LP and in turn to its shareholders.
Flow-through LPs offer the advantages of:
- Shareholders can deduct CEE and CDE flow-through expenses from any source of income
- Reduce current taxable income
- Potential for tax savings
- Experienced portfolio manager making decisions
- Greater portfolio diversification
- Greater potential for capital appreciation
Learn more about flow-through products:
Qwest Investment Fund Management Ltd. (QIFM) and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Accordingly, any discussion of tax matters in any jurisdiction included herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone not affiliated with QIFM of any of the matters addressed herein or for the purpose of avoiding tax-related penalties in any jurisdiction. You should consult your own tax, legal and accounting advisors before engaging in any transaction.