The resource sector needs your immediate advocacy. Please consider writing a letter, as outlined below, to ensure the federal government knows the impact the changes to AMT will have on your project, your company, your employees and the communities you work in.
The newly revised Alternative Minimum Tax (AMT) introduced in the 2023 Federal Budget, effective Jan 1, 2024 may significantly reduce the effectiveness of the flow-through regime and the successful Critical Mineral Exploration Tax Credit, putting thousands of high-paying jobs in rural and remote communities at risk. Annually over a billion dollars are raised through the use of flow-through shares, with the vast majority being Charitable Flow-Through. Under the new AMT rules, flow-through subscribers will be limited to purchasing two thirds of what they normally would for the purpose of donation or investment, impacting both the exploration sector and charities by reducing access to exploration capital (and flow-through shares donated) by about a third in all provinces.
How to address the letter:
Please address your letter jointly to the Hon. Chrystia Freeland, Deputy Prime Minister and Minister of Finance, the Hon. Jonathan Wilkinson, Minister of Energy and Natural Resources, and cc your local MP. You can find your local MP’s email address and mailing address online here by typing in your postal code. Mail may be sent postage-free to any MP. If you are engaged in a resource project you may wish to consider your local MP and the MP representing the area where your project is based.
Hon. Chrystia Freeland,
Deputy Prime Minister and Minister of Finance
House of Commons
Ottawa, Ontario, K1A 0A6
Hon. Jonathan Wilkinson,
Minister of Energy and Natural Resources
House of Commons
Ottawa, Ontario, K1A 0A6
Please also send your letter by email to the following email addresses: chrystia.freeland@fin.gc.ca and HonJonathan.Wilkinson@nrcan-rncan.gc.ca, using the same link as noted above you can find your local MP’s email address.
Key messages to include in your letter:
Your letter should speak to the importance of your exploration project. It should include an introduction to you and the work that your company does, the positive impact the project has (or will have) on the local community including, the number of jobs created, size of your payroll, demographics of your employees, and money spent in the local economy (such as at hardware stores or gas stations). Given the government’s focus on the green transition, it would be helpful to identify the mineral or metal you are exploring for and it’s uses in this transition. Finally, it would be helpful to share how the proposed changes to AMT will impact your ability to finance future exploration and development needs.
PearTree is advocating for the following amendments to be made to the proposed changes to AMT, and it would help our advocacy to have these recommendations echoed:
Amend the AMT calculation such that the capital gain on flow-through shares calculated from a deemed nil cost up to the purchase price not be included in the AMT; Maintain the current 0% inclusion rate for capital gains on donations of publicly listed securities; Maintain 100% of the charitable donation tax credit in the calculation of the AMT Please send us a copy of your letter, so we can reference it in our advocacy efforts.
For further background and more detailed information on the changes to AMT please see the following resources.
