What corporate activities qualify for the tax deductions?
The Government of Canada has stringent requirements that must be met in order to determine whether an activity is development or exploration in nature; the key difference being the amount of write-off allowed. Exploration and certain development activities can be written off at 100%. The companies to which WCSB invest in have experience in determining which classification of activity they are investing in, and the investment agreements in place with these companies ensure they spend the funds as agreed.
