Fiscal Incentives

Updating Canadian Exploration Expenses

Over the years, many PDAC members have alleged that there have been inconsistent rulings, by CRA auditors, on what constitutes a Canadian Exploration Expenses (both between companies, and within the audits done for a single company). This anecdotal feedback led PDAC to undertake a survey of its members, and to conduct a series of interviews with CFOs from member companies, to better understand what the concerns were.

As a In addition, PDAC is calling for CRA to identify a clear bright-line test to establish what constitutes a Canadian Exploration Expense vs. a Canadian Development Expense, namely the completion of a pre-feasibility study.