Canadian Exploration Expenses
The Canadian Exploration Expenses (CEE) is a benefit given to resource companies working in the mining sector, for exploration expenses incurred on canadian soil. CEE can include all and any expenses incurred for the purpose of exploring natural resources in Canada, including drilling expenses.
Limited Partners do not include directly any CEE flowed through the partnership and allocated to them. All CEE's are cumulated in a Cumulative Canadian Exploration Expense (CCEE) account, which can be claimed at the end of the fiscal year by the limited parnters. Almost 98% of the amount incurred in the first year can be deducted at the end of that fiscal year. The remainder is dedcutible the following year. The tax credit generated by the Federal governement is in addition to the deduction allowed for the CEE.
