Our sovereignty is being denigrated. Our economy is under siege.
We are in an economic war, whether we want to admit it or not, and our response cannot be timid. These are challenges that demand bold thinking and brave policy, not half-measures or endless bureaucratic delays.
This is not the time to merely spend, this is the time to invest. If this were a military conflict, our nation would be fully mobilizing. This is a global economic war and we need to marshal our domestic capital like never before.
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There’s a simple, proven tool right in front of us: flow-through shares (FTS). We already know they work and this has become the right time to extend this powerhouse investment incentive tool to Canada’s technology sector.
FTS are not a new or risky experiment. They are one of Canada’s oldest and most successful investment tools. For 71 years, FTS have fuelled Canada’s mining sector, propelling it to the global stage. Canadian companies now account for nearly half of the world’s mining activity. Oil and gas firms use FTS to great effect. Renewable energy has benefited for nearly three decades.
Companies “flow” qualifying expenses to investors, who claim a tax deduction. In 2024 alone, mining companies raised more than $1 billion on the TSX using this mechanism — the highest level of FTS activity in five years.
Meanwhile, the tech sector is contributing more than $125 billion to Canada’s GDP, representing nearly six per cent of our economy. That is almost equal to mining, yet is denied the same access to this powerful financing tool. That’s a mistake we cannot afford to keep making.
And here’s something that’s often overlooked: more than 10 per cent of Canada’s entire tech sector is right here in the National Capital Region. Ottawa is already a major beneficiary of this growth. Kanata North Business Park is the nation’s largest tech park and generates more than $13 billion annually. Imagine what Ottawa’s economy could look like if we doubled down on this success. If we’re serious about growing Ottawa’s economy, then we need to get serious about the answer, which is to grow tech.
Everyday Canadians deserve a chance to invest in our future
Right now, the average Canadian doesn’t have a simple or direct way to invest in the future of our domestic technology sector. Ottawa has made it harder, not easier, for people to invest in their own country’s prosperity.
Our government may have many skills, but selecting which startups to fund is not one of them. Let Canadians make those decisions. Let the people who understand risk — who are willing to invest their own money — place those bets.
The benefit? It’s not just an investment incentive and it does mean up to a 100 per cent tax deduction, but investments generate employment, stimulate supplier businesses, grow tax revenues and feed into CPP contributions for all Canadians. More importantly, they build the backbone of communities right across the country.
Global context: The storm Is already here
We cannot ignore what’s happening beyond our borders. The global turmoil unleashed by U.S. President Donald Trump’s aggressive trade actions only accelerates the urgency for Canada to secure its economic independence.
Our trading partners are weaponizing tariffs and foreign capital is quick to flee at the first sign of volatility. If we sit idle, our best opportunities — our brightest founders and fastest-growing companies — will continue to be picked off by foreign investors or wither and die. Investment is the lifeblood of tech. This is about sovereignty just as much as prosperity.
This is not a lone voice in the wilderness.
Our campaign, Canada Flow-Through Shares, is backed by a coalition of tax lawyers, venture capitalists, angel investors, CEOs, business groups and tech industry analysts. The Canadian Chamber of Commerce and the Toronto Stock Exchange are calling for this change. Just imagine what tech could do with new investments, chosen by investors.
Let’s be clear: we’re not asking for subsidies, bailouts or government-selected handouts. We’re asking to be allowed to put our money where our future is.
We don’t need the federal government to play kingmaker with taxpayers’ dollars. The market — and Canadians willing to take a risk — are far better suited to the task. Give us the FTS tool that will help us build the economy and the future we deserve.
David Perry is a 40-year entrepreneur living in Gatineau. He is a tech talent recruiter and active supporter of the tech sector. Paul LaBarge is a nationally recognized tax and business law expert based in Kanata who is known for work in tech M&As and IPOs.
