Canada Updates Income Tax Folio for Principal-business Corporations in Resource Industries

The Canadian Revenue Agency has published an updated income tax folio for principal-business corporations (PBC) in resource industries. The folio discusses the criteria for determining whether a corporation qualifies as a PBC, as well as the significance of PBC status and the related benefits, which include:

• Deduction for certain PBCs in respect of cumulative Canadian exploration expense (CEE);
• Deduction for certain PBCs that engage in trading in resource properties;
• Exemption from certain p…