I heard non-reporting pinky shells are in high demand these days. I imagine its worth about as much as that 300 feet of copper 20 miles long that was pumped for years.
There are 15 percent exploration surface tax credits, but when control of a company is acquired, all net capital loss carryovers are lost and the subsequent deduction of pre-control non-capital loss carryovers becomes restricted. Generally speaking, pre-control non-capital business losses are restricted to a deduction against income from a business that produces the same or similar products. In addition, a tax year is deemed to end immediately before the acquisition of control, effectively accelerating the expiry of any non-capital loss carryover.
And also read page 10:
The income tax legislation dealing with exploration and development expenditures reflects an underlying policy that income tax relief should be available in respect to those expenditures, even to a taxpayer that did not necessarily incur the expense (as long as a deduction is claimed only once in respect of any particular expense). To this end, the so-called “successor corporation” rules of the Income Tax Act contain complicated provisions that, in certain circumstances, allow the unclaimed exploration and development expense balances of a particular taxpayer to be “inherited” by another corporation.
A corporation (the successor corporation becomes entitled to deduct in subsequent years an amount in respect of a transferor’s (the predecessor’s) unclaimed CCEE, CCDE and FEDE (or FRE) balances, if the successor corporation:
--Acquired “all or substantially all” of the predecessor’s Canadian and foreign resource properties; and
--jointly elected with the predecessor in a prescribed manner.