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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: jpthoma1 who wrote (12467)	6/1/2006 8:02:01 AM
From: labbe	Respond to of 78416

But read that one if you are not a strong believer in gold

To: jpthoma1 who wrote (12467)	6/1/2006 12:27:31 PM
From: E. Charters	Read Replies (2) \| Respond to of 78416

The best way governments have found to manage exploration risk is to tax deduct it. That is why flow-through first on the London stock exchange and then in Canada was so successful. In this plan, the company's exploration expenditures are "renounced" to the investor to use on his personal taxes at some accelerated rate. This has been continued by the conservative knee-jerk reactionaries for one more year in order to line the coffers of the fat-cat explorationists at 115% expenditure evaluation towards the investor. Better than lining their coffins I say. In the Canadian plan, the tax break which works for companies or individuals is mitigated by valuating the stock on sale as if it were bought for nothing. You then pay a capital gain tax at your rate on 25% of the stock's sal price. So some refer to it as a tax deferral scheme, rather than a tax avoidance scheme. (It would be fairer if the valuation of the capital gain were on the difference in buying price and the selling price, adjusted albeit for the tax deductive gain on the first instance.) Flow thru season is thought of as fall to winter and will give a big boost to CDN companies with Canadian properties this fall. US investors have to have company interest with income in Canada to truly benefit. There are other ways to think of it as it is PP style stock that does not require minimums to participate in, so it is often bought by these foreign owned entities without income. Risk was also mitigated by Canada in its glory days where there was no capital gain tax charged at all. This made investment in CDN stocks a very good idea and many US individuals had large holdings during that period. That cash development cow was cut off when the CDN government got large and greedy in the 60's. Governments who grab eventually screw themselves and the economy. Takes a while for the tax payer to wake up to that, as the lying suits are never going to tell them they are being bribed with their own money. (The maritime people must be on the average as stupid as voters anywhere as they always vote for handouts. Sharp contrast to the wealthy maritime states of the lower 48. The Maritimes are Canada's Appalachia.) EC<:-}