“investing in a mining company is tax-free”

Another federal government program involves what are known as flow-through shares. This is a tax program specifically encouraging investors to put money in mining shares or, to put it another way, a program that indirectly subsidizes stock market speculation on the securities of junior companies. Flow-through shares are a way for mining companies to provide shareholders with tax deductions for expenses that the companies themselves cannot claim because they have already deducted over 100% of their income [48] (this testifies, of course, to the incredible generosity of Canadian tax laws for mining companies). The goal is to induce investors both big and small to support mining securities. There is no way this program can be justified according to the arguments used when it was introduced in 1954 as a way of stimulating investment in mining. Today, the program allows mining, gas, and oil companies to issue shares that are entirely tax-deductible in Canada. In our country, investing in a mining company is tax-free, just as a charity donation is tax-free.

(Canada: A New Tax Haven, Alain Deneault (transl. Catherine Browne) 204, 2015 transl. Talonbooks. Vancouver. 168)