Our Pre-Budget Submission for 2025: Extend Flow-Through Shares to Tech

On behalf of CanFlowThrough.com, I am pleased to submit our recommendations for Budget 2025.

We respectfully urge the Government of Canada to extend the Flow-Through Shares (FTS) framework, currently proven in the mining and energy sectors, to Canada’s technology sector. This shovel-ready reform requires no new bureaucracy and can be implemented immediately through existing CRA mechanisms.

The case is urgent and compelling:

• As promised by Prime Minister Carney during the 2025 federal election, FTS for technology is a bold, shovel-ready policy that will deliver immediate impact.
• Immediate economic impact: Year-one estimates show $500M in new private investment, $1.25B in economic activity, and $375M in new tax revenues.
• International precedent: The U.K.’s SEIS and EIS programs have raised £30B, supported over 53,000 firms, created 400,000 jobs, and generated 80,000 patents. Canada has the framework in place to achieve the same.
• National interest: Canada’s tech sector employs 1.8 million Canadians. Extending FTS will strengthen sovereignty by keeping intellectual property, ownership, and high-value jobs at home while democratizing access to wealth creation for all Canadians.
• Fiscal responsibility: This is a zero-delay, fiscally neutral program that mobilizes private capital without creating new government spending obligations.

Recommendations:

1. Extend Flow-Through Shares to eligible Canadian technology companies in Budget 2025, modeled on the mining and energy framework.
2. Establish eligibility criteria tied to innovation, commercialization, and job creation outcomes.
3. Benchmark against U.K. SEIS/EIS programs to ensure global competitiveness.
4. Position FTS as a key pillar in reversing productivity decline and retaining Canadian innovation.

This proposal represents the voices of founders, investors, and Canadians who want to see Canadian ideas scaled into Canadian companies. Budget 2025 is the moment for bold but fiscally prudent action.

Conclusion:
From Avro to AI, Canada cannot afford to repeat the mistakes of the past. Extending Flow-Through Shares to the technology sector is the fastest, most impactful, and most responsible step the government can take to secure our economic future.

Respectfully submitted,
David E. Perry
Co-Founder, CanFlowThrough.com

613.850.0608 cell