Individual Tax Reduction

This strategy is specifically meant for individuals earning high personal income looking
to reduce their total tax burden. It utilizes a unique, structured transaction that provides
the tax benefits of Flow-through Shares while avoiding the price risk and liquidity
constraint that usually comes with Private Placements.

Before committing to a transaction, we always arrange a liquidity provider – typically, an
institutional investor that wants to own the shares – to purchase the shares from our
participant at a predetermined price. The buy and sell take place on the same day and
the proceeds of sale are sent back to the participant’s bank account, typically within a
few days of closing.

To take advantage of the tax benefits, an individual must qualify as an  Accredited
. Because the value of flow-through tax benefits is maximized when the
purchaser is in the highest marginal tax rate, we typically recommend participation to
individuals with high income (in excess of $250,000) in the current year.

Note: This is NOT an investment; merely a “Bought Deal” transaction, in which you own
the shares for no more than a minute. When the transaction closes you are left with tax
benefits and the proceeds of sale.

For more information contact us today.

Minimizing Tax and Enhancing Philanthropy for Canadian Accredited Investors Since 2006