Flow-through shares offer huge tax benefits to Canadians. Created by the Canadian government to incentivise investment in resource exploration, purchasers of flow-through shares receive tax benefits that can exceed 55% of the cost of their purchase
(and significantly higher in certain provinces).
Flow-through shares are typically issued by resource exploration companies with speculative future prospects. The shares can be extremely volatile. A loss on the shares can wipe out the value of the tax benefits and lead to an aggregate loss. Additionally, the shares are frequently issued subject to a four-month restricted trading period so that the purchaser is unable to sell the shares during that period. Alternatively, purchases of flow-through share limited partnership interests usually lock up the purchaser's funds for more than one year.
Ber Tov Capital Corporation originated and developed structured flow-through share strategies that allow Canadians to capture the tax benefits of flow-through shares without the associated market risk and illiquidity. Since our company's formation in 2006, we have advised our clients regarding the purchase and sale of more than $500 million of flow-through shares. We offer distinct strategies for individuals and corporations looking for outright tax reduction and for philanthropists seeking to make large charitable gifts at a reduced cost.
Ber Tov Capital Corporation is an Exempt Market Dealer registered and serving clients in the provinces of Ontario, Quebec, British
Columbia, Alberta, and Manitoba.