Resource sector as a tax shelter

Most investors do not invest directly in the resource sector. Instead, they obtain tax write-offs or tax credits by investing in limited partnerships created for that purpose or in shares (flow-through shares) whereby the companies pass on the deductions to the shareholders, who claim them on their own tax returns.

There are various types of resource expenses you can claim, and each one is subject to special rules regarding the amount that can be claimed as a deduction. As with any other investment, your decision to invest in the resource sector should consider its overall investment potential rather than just focusing on the write-offs. Your financial adviser can assist you in making this assessment.