- What is the Ontario Focused Flow-through Share Tax Credit?
- When can I claim the tax credit?
- How much is the tax credit?
- How do I claim the tax credit?
- Who is eligible to claim the OFFTS tax credit?
The OFFTS stimulates mineral exploration in Ontario by improving access to capital for small mining exploration companies. The tax credit provides eligible shareholders a refundable tax credit.
This tax credit applies to eligible flow-through shares purchased after October 17, 2000.
The tax credit is equal to 5% of eligible Ontario expenses. The credit reduces Ontario tax payable. Any amount not used to offset tax payable is refunded to the individual.
The OFFTS tax credit is administered by the Canada Revenue Agency (CRA). The credit is claimed on Form ON 479, Ontario Credits contained in the T1 General Ontario income tax return.
To qualify, an individual must:
- have purchased eligible flow-through shares in accordance with section 66 of the Income Tax Act (Canada)
- have filed an Ontario income tax return for the taxation year in which the credit is being claimed, and
- be an individual, other than a trust, who is resident in Ontario on December 31 of the taxation year.