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

To: Buckey who wrote (532)	1/9/2005 1:20:46 PM
From: Robert Salasidis	Read Replies (1) \| Respond to of 548

My guess (and only a guess) is that they should be treated as return of capital (ie a capital gains distribution). Inside the RRSP - nothing would need to be done.

To: Buckey who wrote (532)	1/9/2005 5:51:44 PM
From: DaveAu	Read Replies (2) \| Respond to of 548

<<OT - May I ask what %age were these settlements of your holdings? I have only heard of very rare cases where shareholders got much more than 10% and in most cases ZILCH>> The settlement documents from the court used the figure 11% of the losses so I was expecting a fairly modest but not immaterial cheque. I was quite surprised to see that what everyone received was actually 71% of their losses. The only explanation I can think of is that most people had only small holdings so they didn't bother registering thus leaving far fewer people to cut up the pie. On top of the class action proceeds we also received shares in ONC and HKR so it turned out to be a profitable investment. For the non-RRSP holdings, I'm pretty sure I have to treat it as capital gains. I'm really not sure about the RRSP. The cheques were to me, not my RRSP, so in a way it's like I made a withdrawal. Dave