Company: AXREF
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001654954-25-008549
Chunk: 67

Company: AMARC RESOURCES LTD
Filing Date: 2025-07-28
Form: 20-F
Item: Item 10
Chunk 67
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 administrative policy, although no assurance can be given in these respects. This summary does not take into account provincial, U. S. or other foreign income tax considerations, which may differ significantly from those discussed herein.

This summary is not exhaustive of all possible Canadian income tax consequences. It is not intended as legal or tax advice to any particular U. S. Holder and should not be so construed. The tax consequences to a U. S. Holder will depend on that U. S. Holder’s particular circumstances. Accordingly, all U. S. Holders or prospective U. S. Holders should consult their own tax advisers with respect to the tax consequences applicable to them having regard to their own particular circumstances. The discussion below is qualified accordingly.

Dividend

Dividends paid or deemed to be paid or credited by the Company to a U. S. Holder are subject to Canadian withholding tax. Under the Treaty, the rate of withholding tax on dividends paid to a U. S. Holder is generally limited to 15% of the gross dividend (or 5% in the case of a U. S. Holder that is a corporate shareholder owning at least 10% of the Company’s voting shares), provided the U. S. Holder can establish entitlement to the benefits of the Treaty.

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Disposition

A U. S. Holder is generally not subject to tax under the Tax Act in respect of a capital gain realized on the disposition of a common share in the open market, unless the share is “taxable Canadian property” to the holder thereof and the U. S. Holder is not entitled to relief under the Treaty.

Provided that the Company’s common shares are listed on a “designated stock exchange” for purposes of the Tax Act (which currently includes the TSX Venture) at the time of disposition, a common share will generally not constitute taxable Canadian property to a U. S. Holder unless, at any time during the 60 month period ending at the time of disposition, (i) the U. S. Holder, persons with whom the U. S. Holder did not deal at arm’s length for purposes of the Tax Act, partnerships in which the U. S. Holder or such persons holds a membership interest directly or indirectly, (or the U. S. Holder together with any such foregoing persons) or partnerships, owned 25% or more of the issued shares of any class or series of the Company AND (ii) more than 50% of the fair market value