History

Flow-Through shares were enacted by the Federal Government of Canada back in 1954 as a means of encouraging investment into exploration for natural resources. Today, flow-through shares issued by oil & gas, mining or renewable energy companies are one of the last legitimate tax-assisted investments available to Canadian resident investors (both individual and corporate) and represent an attractive investment planning opportunity.

What are flow-through shares?

Flow-Through shares are common shares like any other common share issued and outstanding in a company, except they provide tax benefits to the purchaser. A flow-through share is available to mining, petroleum and certain types of renewable energy companies to facilitate financing exploration and project development activities. In return for receiving these funds, the resource company has the obligation to “flow-through” to the purchaser of the flow-through share the tax deductions it receives upon spending the funds on qualifying exploration and development activities. Except for the initial tax benefits, flow-through shares are indistinguishable from all other common shares of a company.

Why invest in flow-through shares?

Flow–Through share investments are gaining popularity among Canadian investors and are providing an important source of capital to oil & gas, mining and renewable energy companies. As well, flow-through shares help achieve the government’s objective of accelerating the development of Canada’s vast natural resources and in turn contribute directly to strengthening and diversifying Canada’s economy.

Flow-Through shares are specifically provided for within the Income Tax Act and in no way should be considered as a way to avoid or circumvent taxes payable. The key benefits to purchasing flow-through shares are the tax deductions (up to approximately 100% of invested capital) that they provide investors. Essentially, through the purchase of flow-through shares, investors are able to realize tax savings at tax rates applicable to income from employment, business or property and to defer the payment of tax on that income until sometime in the future - when their investment is sold - at which time the sale proceeds will be taxable as a capital gain. For information on how a Flow-Through Limited Partnership works, please visit our Frequently Asked Questions (FAQ’s) and our Jov Flow-Through Structure pages.

Are you an “Ideal Investor”?

Jov Flow-Through Limited Partnership(s) provides investors with an opportunity to participate in Canada’s resource sector. What defines an “Ideal Investor”?

• High income earners, subject to the highest marginal tax rate
• Investors who want exposure to the resource sector and understand the risks involved
• Investors who are able to wait two-years to achieve liquidity

Is this for you?

Jov Flow-Through recommends that investors consult with their registered Investment Advisor before making any investment decisions.