re share placement last april, page-13

FWIW
1) Anyone relying on journalists for tax advice wrt shares should go back to taxi driving. Your investing/trading habits, and the intent when you bought the shares a crucial, and specific to the individual. Getting QUALITY TAX ADVICE is an imperative, in order to avoid very serious tax problems/expenses.

2) In the case of CVN, if one was generally a longterm investor, one could easily imho have bought CVN expecting future income, esp if in the 7.7 cent placement, or since then. The placement was very clearly to develop an income producing asset. Some investors may have bought the shares solely for the resultant capital gain, others with the expectation of future dividends. Many of the later would qualify for the discount imho (but then I am no expert, just making an inference, as the recipient of advise specific to my circumstances).

3) I am very sure most "sophisticated investors" taking shares in the placement as individuals would have had the savvy to ensure these shares were bought with income producing intent, and illegible for the discount. That they change their intent and sell now with such a huge gain does not alter their original intent.

The whole subject appears to me complex, lots of grey areas. I rely on a tax specialist, suggest you do too unless you are absolutely certain. Fortunately for me I am now nonresident, and my CVN shares are not CGT assets.

EL