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Gold/Mining/Energy : TAXES, TAXATION, TAX and Canadian stocks -- Ignore unavailable to you. Want to Upgrade?

To: scouser who wrote (79)	3/5/2000 1:02:00 PM
From: mappingworld	Read Replies (1) \| Respond to of 548

Presuming it would stay perfectly static for those 12 months, the penalty would be 12%, 1% for each month. Am I getting this? Olga <<if you had $100,000 on jan 1 and the value was $100,000 exactly through dec31 , yes you would pay 1% of $80,000>>>

To: scouser who wrote (79)	3/5/2000 1:18:00 PM
From: bwtidal	Read Replies (1) \| Respond to of 548

the penalty is based on the book value (amount paid) for the investment. that does not vary "day by day". if you put $100,000 in Qualcomm, 100% of the RRSP, and it is now worth $2,000,000, you are paying 1%/month on $100,000 (unless you were buying and selling in between.) not advising this, just clarifying the rules...

To: scouser who wrote (79)	3/6/2000 1:10:00 AM
From: Michael Dean	Read Replies (1) \| Respond to of 548

Re: Foreign content status of stock .. believe what generally counts is where company is incorporated. I hold considerable shares of Toronto-based Visible Genetics (VGIN) which trades only on NASDAQ yet is Canadian content. You may have to remind your broker because they may just automatically assume since on Nasdaq that it is foreign. Incidentally a good tactic is to sell and then repurchase RRSP holdings of Canadian stocks which have risen substantially. In last year or so VGIN up from $8 US to $95 so these actions on say 1000 shares adds about $126,000 to Canadian book value and thus another $31,600 of potential foreign content (@ 20%) or perhaps now $42,000 (@ 25%). All for the price of two commissions (perhaps $60 at a discount brokerage .. not bad to buy $42,000 more foreign content.) Interesting case is JDS-Fitel (Canadian) which merged with Uniphase to become JDS-Uniphase Nasdaq:JDSU. They somehow managed to stay Canadian content by issuing special Canadian shares TSE:JDU which are Canadian content but are convertible at anytime into equivalent US shares and therefore track NASDAQ shares almost exactly. Unfortunately if you have major gains on foreign stocks, probably best to hold them unless they really turn south because selling them will actually reduce your effective foreign content if you can only reinvest part of the proceeds without exceeding content rules. These rules are still a pain .. especially if you transfer to a different plan or to a RIF and the book values are recalculated forcing you to sell your most sucessful investments to get back under content limits. Kind of dumb since we all know that we can go 100% foreign if we really want to through so called RSP funds using derivatives.