Once the books for the deal have closed, the partnership invests in the common shares of mining and oil & gas exploration companies across Canada. In turn, these companies have until the end of the following year to spend the moneys raised on qualifying exploration expenses which are "flowed-through" to the Canada Dominion partnership. Canada Dominion in turn, "flows through" these deductions and credits over to its investors which are reported on a T-5013A/R15 form. The deductions afforded through a flow-through share are very generous, so as an offset, the adjusted cost base on shares purchased are reduced to zero.
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