,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,9COME ,TAX ,ACT
  ,CAPITAL ,PROP]TY--,"S ,ADJU/;TS 6,CO/
  ,BASE
,NUMB]3 ,,IT-#DEF;,R
,DATE3 ,JULY #I1 #AIIJ
,REF];E3 ,SUBSEC;NS #EC7#A7 & 7#B7

               ,APPLIC,N
    
  ,? BULLET9 REPLACES & C.ELS ,9T]PRET,N
,BULLET9 ,,IT-#DEF DAT$ ,AUGU/ #BI1
#AIHJ4 ,CURR5T REVI.NS >E DESIGNAT$
0V]TICAL L9ES4





                                      #A
                ,SUMM>Y              A#A
    
  ,DET]M9+ ! ADJU/$ CO/ BASE 7,,ACB7 (A
PROP]TY IS RELEVANT =! PURPOSES (!
PROVI.NS (! ,ACT RELAT+ 6CAPITAL GA9S4
,? BULLET9 4CUSSES "S (! REQUIR$
ADJU/;TS 6! CO/ BASE ( V>I\S CAPITAL
PROP]TIES1 9CLUD+ A %>E (A CORPOR,N1 A
CAPITAL 9T]E/ 9 A TRU/ & VACANT L&4

          ,4CUS.N & ,9T]PRET,N
    
#A4 ,= -;TS ON O!R ADJU/;TS 6CO/ BASE1
  SEE ! CURR5T V].NS (! FOLL[+
  ,9T]PRET,N ,BULLET9S & ANY ,SPECIAL
  ,REL1SES 6^! BULLET9S3
  ,B5EFITS 6,EMPLOYEES--,,IT-#AAC
  ,GOV]N;T ,ASSI/.E--,,IT-#EC1 ,,IT-
    #BDI1 ,,IT-#BEA1 ,,IT-#BEB1 ,,IT-
    #BGC & ,,IT-#BGF
  ,9VE/;T ,TAX ,CR$ITS--,,IT-#CCA
  ,L&--,,IT-#BJJ1 ,,IT-#BCB1 ,,IT-#BFD &
    ,,IT-#CEJ
  ,"PN]%IPS--,,IT-#CCH & ,,IT-#CEC
                                      #B
              ,,IT-#DEF;,R           B#A
  ,UNIT ,TRU/S--,,IT-#CIJ
  ,%>E (A ,CORPOR,N
#B4 ,P>AGRAPH #EC7#A77C7 PROVIDES = AN
  A4I;N 6A TAXPAY]'S ,,ACB (A %>E (A
  CORPOR,N ": ! TAXPAY] HAS MADE A
  3TRIBU;N ( CAPITAL 6! CORPOR,N AF
  #AIGA4 ,! EXPRES.N 83TRIBU;N (
  CAPITAL0 IS N DEF9$ 9 ! ,ACT4 ,X IS !
  ,DE"P;T'S VIEW T A TRANSAC;N T O!RWISE
  9CR1SES ! CAPITAL (A CORPOR,N )\T ANY
  3SID],N 2+ GIV5 0! CORPOR,N 9 RESPECT
  ( T 9CR1SE MAY RESULT 9 A 3TRIBU;N (
  CAPITAL =! PURPOSES ( P>AGRAPH
  #EC7#A77C74 ,= EXAMPLE1 A 3TRIBU;N (
  CAPITAL O3URS ": A %>EHOLD] HAS FULLY
  PD = NO-P> %>ES & SUBSEQU5TLY AGREES
  6MAKE AN A4I;NAL 3TRIBU;N 6! CORPOR,N
  7E4G41 6REMOVE A DEFICIT OR 6PROVIDE
  FUNDS = EXPAN.N )\T ! ISSU.E ( ANY
  A4I;NAL %>ES74 ,AL1 A 3TRIBU;N (
  CAPITAL O3URS ": A DEBT
--------------------------------------#B
  [+ 0A CORPOR,N 6A %>EHOLD] IS
  ABSOLUTELY =GIV54 ,( C\RSE1 !       #C
              ,,IT-#DEF;,R           A#B
  PROVI.NS ( SUBSEC;N #HJ7#A7 WD APPLY
  6S* =GIVE;S4
#C4 ,9 -PUT+ ! ,,ACB ( PROP]TY AF ,JUNE
  #AIHH1 ": "P OR ALL (A 3TRIBU;N (
  CAPITAL MADE 0A TAXPAY] AF T DATE C
  R1SONABLY 2 REG>D$ Z A B5EFIT 3F]R$ ON
  .ANY .P]SON 7O!R ?AN ! CORPOR,N7 :O 0
  RELAT$ 6! TAXPAY]1 X IS ONLY T POR;N
  (! 3TRIBU;N : EXCE$S ! B5EFIT POR;N T
  9CR1SES ! ,,ACB (! TAXPAY]'S %>ES4 ,9
  -PUT+ ! ,,ACB ( PROP]TY 2F ,JULY
  #AIHH1 ! SAME RE/RIC;N W APPLY ": !
  3TRIBU;N ( CAPITAL 0 MADE AF ,DECEMB]
  #AA1 #AIGI & 2F ,JULY #AIHH & "P ( X C
  R1SONABLY 2 REG>D$ Z A GIFT MADE 6OR
  =! B5EFIT ( ANY S* P]SON4 ,= EXAMPLE1
  ! REQUIRE;T T ! 9CR1SE 9 ! ,,ACB 2
  REDUC$ 0ANY S* B5EFIT OR GIFT POR;N W
  APPLY ": T POR;N C R1SONABLY 2 REG>D$
  Z A B5EFIT 3F]R$ ON 7OR1 ": APPLICA#1
  A GIFT MADE 6OR =! B5EFIT (7 A RELAT$
  P]SON 7O!R ?AN ! CORPOR,N7 :O _H A "R
  6ACQUIRE %>ES (! CORPOR,N4 ,PRIOR
  6,DECEMB] #AB1 #AIGI1 ? TR1T;T 0    #D
              ,,IT-#DEF;,R           B#B
  LIMIT$ 63TRIBU;NS MADE 6OR =! B5EFIT (
  ANO!R %>EHOLD] (! CORPOR,N :O 0 RELAT$
  6! 3TRIBUTOR4 ,": A 3TRIBU;N ( CAPITAL
  0A TAXPAY] 9CR1SES ! FAIR M>KET VALUE
  ( ANO!R P]SON'S %>E1 T 9CR1SE W 2
  3SID]$ A B5EFIT 3F]R$ ON 7OR1 ":
  APPLICA#1 A GIFT MADE 6OR =! B5EFIT (7
  ANO!R P]SON4
#D4 ,": A %>EHOLD] 4POSES ( CAPITAL
  PROP]TY 6A CORPOR,N & AN ELEC;N IS
  MADE PURSUANT 6SEC;N #HE1 NO AM.T MAY
  2 A4$ 6! ADJU/$ CO/ BASE (! %>EHOLD]'S
  %>E "U P>AGRAPH #EC7#A77C71 EXCEPT 6!
  EXT5T ALL[$ 0SUBSEC;N #EC7#A.A7 9
  RESPECT ( 4POSI;NS ( PROP]TY 2F ,MAY
  #G1 #AIGD4
#E4 ,PROVID$ ! 3TRIBU;N RESULTS 9 "S
  9CR1SE 9 ! FAIR M>KET VALUE (!
  3TRIBUTOR'S %>ES1 ! ,,ACB ( ^? %>ES W
  2 9CR1S$ 0T PROPOR;N (! AM.T (!
  3TRIBU;N Z MAY R1SONABLY 2 REG>D$ Z
  P]TA9+ 6^? %>ES4 ,": ! 3TRIBUTOR [NS M
  ?AN "O CLASS ( %>ES (! CORPOR,N1 !
  ,,ACB 9CR1SE 6! 3TRIBUTOR'S %>ES    #E
              ,,IT-#DEF;,R           C#B
  O!RWISE CALCULAT$ W 2 PRORAT$ AM;G ^?
  %>ES ON ! BASIS (! RELATIVE 9CR1SES 9
  FAIR M>KET VALUE1 Z A RESULT (!
  3TRIBU;N1 (! %>ES [N$ 9 EA* CLASS4
#F4 ,": TR1SURY %>ES >E ACQUIR$ F A
  CORPOR,N 9 A NON->M'S L5G? TRANSAC;N
  AT A PRICE T IS GRT] ?AN _! FAIR M>KET
  VALUE1 ! CO/ (! %>ES IS REDUC$ "U
  P>AGRAPH #FI7#A77A7 6T FAIR M>KET
  VALUE4 ,! DI6];E 2T ! PRICE PD =! %>ES
  & _! FAIR M>KET VALUE IS 3SID]$ 6BE A
  3TRIBU;N ( CAPITAL =! PURPOSE (
  P>AGRAPH #EC7#A77C7 PROVID$ ! 3TRIBU;N
  RESULTS 9 "S 9CR1SE 9 ! VALUE ( ALL !
  %>ES (! CORPOR,N [N$ 0! %>EHOLD]4
--------------------------------------#C
#G4 ,"U ! ,9T]NAL ,REV5UE ,CODE1 A
  ,U4,S4 CORPOR,N & XS %>EHOLD]S MAY
  ELECT 6DEEM ! CORPOR,N 6H PD A DIVID5D
  783S5T DIVID5D07 &! %>EHOLD] 6H
  SIMULTANE\SLY MADE A 3TRIBU;N (
  CAPITAL1 :5 9 FACT NO DIVID5D PAY;T OR
  3TRIBU;N ( CAPITAL TAKES PLACE4 ,?
  8DIVID5D0 IS N RECOGNIZ$ Z AN       #F
              ,,IT-#DEF;,R           A#C
  AM.T RCVD =! PURPOSE ( SEC;N #IJ1 NOR
  IS ! NO;NAL 3TRIBU;N ( CAPITAL
  RECOGNIZ$ Z A 3TRIBU;N ( CAPITAL =!
  PURPOSE ( P>AGRAPH #EC7#A77C74
#H4 ,SUBSEC;N #HD7#I7 PROVIDES T = GRT]
  C]TA9TY1 ": A TAXPAY]'S %>ES (A
  CORPOR,N >E REDEEM$1 ACQUIR$ OR C.ELL$
  0! CORPOR,N1 ! TAXPAY] % 2 DEEM$ 6H
  4POS$ (! %>ES 6! CORPOR,N4 ,"!=E1 ": A
  TAXPAY]'S %>ES 79CLUD+ A "PN]%IP'S
  %>ES7 9 A CORPOR,N >E REDEEM$1 ACQUIR$
  OR C.ELL$1 SUBSEC;N #HE7#D7 IS
  APPLICA# 9 ^? CASES ": ! CORPOR,N IS
  DIRECTLY OR 9DIRECTLY 3TROLL$ IMMLY AF
  ! TRANSAC;N BY
  7A7 ! TAXPAY]1
  7B7 ! TAXPAY]'S SP\SE1 OR
  7C7 ": ! TAXPAY] IS A CORPOR,N1 A
    P]SON OR GR\P ( P]SONS 0:OM !
    TAXPAY] 0 DIRECTLY OR 9DIRECTLY
    3TROLL$4
  
  ,IF ! TAXPAY] R1LIZES A CAPITAL LOSS 9
  S* CIRCUM/.ES1 SUBSEC;N #HE7#D7     #G
              ,,IT-#DEF;,R           B#C
  DEEMS ! LOSS 6BE NIL &1 TGR ) P>AGRAPH
  #EC7#A77F4#B71 PROVIDES =! LOSS 6BE
  A4$ 6! ,,ACB (! TAXPAY]'S REMA9+ %>ES4
  ,P>AGRAPH #HE7#D77B7 PROVIDES A =MULA
  = ALLOCAT+ ! ADJU/;T 6EA* CLASS ( %>ES
  HELD 0! TAXPAY]4
#I4 ,": AN A4I;NAL PAY;T IS MADE ON A
  %>E Z A RESULT (A CALL = 9/AL;T
  PAY;TS1 ! AM.T (! PAY;T IS 9CLUD$ 9 !
  ,,ACB (! %>E "U P>AGRAPH #ED7A7 Z "P
  (! CO/4
#AJ4 ,P>AGRAPH #EC7#B77A7 PROVIDES =!
  FOLL[+ DEDUC;NS 9 -PUT+ A TAXPAY]'S
  ,,ACB (A %>E (A CORPOR,N RESID5T 9
  ,CANADA4
  7A7 ,! AM.T (A DIVID5D RCVD 0A TAXPAY]
    IS DEDUCT$ "U SUBP>AGRAPH
    #EC7#B77A77;I71 UN.S ! DIVID5D IS
    7;I7 A TAXA# DIVID5D1
    7;II7 A DIVID5D 9 RESPECT ( : !
      CORPOR,N PAY+ ! DIVID5D ELECT$ 9
      A3ORD.E ) SUBSEC;N #HC7#B72 I4E41
      A DEEM$ CAPITAL DIVID5D1 OR
                                      #H
              ,,IT-#DEF;,R           C#C
    7;III7 A DIVID5D PD AF ,JUNE #BH1
      #AIHB & 2F ,MAY #BD1 #AIHE 9
      RESPECT ( : ! CORPOR,N PAY+ !
      DIVID5D ELECT$ 9 A3ORD.E )
      SUBSEC;N #HC7#B.A7 Z X R1D )
      RESPECT 6DIVID5DS PD 2F ,MAY #BD1
      #AIHE 7I4E41 A DEEM$ LIFE 9SUR.E
      CAPITAL DIVID5D74
  ,DIVID5DS 6: ? PROVI.N WD APPLY >E
  DIVID5DS PAYA# AF #AIGH 6: SUBSEC;N
  #HC7#A7 APPLIES1 &
--------------------------------------#D
  DIVID5DS 9 RESPECT ( : AN ELEC;N 0
  MADE "U SUBSEC;N #HC7#A7 Z X R1D )
  RESPECT 6C]TA9 DIVID5DS PAYA# 2F
  #AIGI4

  7B7 ,ANY AM.T RCVD 0! TAXPAY] AF #AIGA
    ON A REDUC;N (! PD-UP CAPITAL (!
    CORPOR,N 9 RESPECT (! %>E IS DEDUCT$
    "U SUBP>AGRAPH #EC7#B77A77;II71
    EXCEPT 6! EXT5T T ! AM.T IS DEEM$
    0SUBSEC;N #HD7#D7 6BE A DIVID5D RCVD
    0! TAXPAY]4                       #I
              ,,IT-#DEF;,R           A#D
  7C7 ,ANY REDUC;N REQUIR$ "U SEC;N
    #HD.A Z X APPLI$ 2F ,MAY #BC1 #AIHE
    IS DEDUCT$ "U SUBP>AGRAPH
    #EC7#B77A77;III74
  7D7 ,9 RESPECT (A TRANSAC;N OR EV5T T
    O3URR$ 2F ,MAY #BD1 #AIHE1 ANY AM.T
    T WD1 B = SUBSEC;N #HD7#H7 Z X
    APPLI$ 2F ,MAY #BD1 #AIHE1 H BE5 A
    DEEM$ DIVID5D "U SUBSEC;N #HD7#B7 IS
    DEDUCT$ "U SUBP>AGRAPH
    #EC7#B77A77;IV71 EXCEPT 6! EXT5T T
    S* AM.T 0 PROCE$S ( 4POSI;N (A %>E4
  
          ,SUB/ITUT$ ,PROP]TY
    
#AA4 ,) C]TA9 EXCEP;NS1 A LOSS SU/A9$ 0A
  TAXPAY] ON ! 4POSI;N (A PROP]TY W
  REPRES5T A 8SUP]FICIAL LOSS0 PURSUANT
  6P>AGRAPH #ED7;I7 ": ! SAME OR
  ID5TICAL PROP]TY 7REF]R$ 6Z 8SUB/ITUT$
  PROP]TY07 IS
  7A7 ACQUIR$ 0! TAXPAY]1 ! TAXPAY]'S
    SP\SE OR A CORPOR,N 3TROLL$ 0!
                                     #AJ
              ,,IT-#DEF;,R           B#D
    TAXPAY] )9 ! P]IOD 2G9N+ #CJ "DS 2F
    & 5D+ #CJ "DS AF ! 4POSI;N1 &
  7B7 [N$ #CJ "DS AF ! 4POSI;N 0! P]SON
    :O ACQUIR$ ! PROP]TY4
  
  ,P>AGRAPH #EC7L77F7 P]MITS ! [N] (!
  SUB/ITUT$ PROP]TY 6ADD ! AM.T (A
  SUP]FICIAL LOSS 9 DET]M9+ ! [N]'S
  ,,ACB ( T SUB/ITUT$ PROP]TY4
#AB4 ,! ADJU/;T PROVID$ 0P>AGRAPH
  #EC7#A77F7 IS M DI6ICULT 6DET]M9E :5
  ID5TICAL PROP]TIES 7S* Z %>ES HAV+ !
  SAME "RS7 >E B"\ & SOLD & "S >E ON H&
  AT ! 5D (! P]IOD4 ,:5 M ITEMS >E SOLD
  ?AN ACQUIR$1 AN ALL[A# CAPITAL LOSS W
  O3UR4 ,= EXAMPLE1 IF A TAXPAY] HAV+
  9ITI,Y #EJ ID5TICAL PROP]TIES ON H&
  SELLS #BJ ITEMS AT A LOSS & REACQUIRES
  #AE 9 ! RELEVANT P]IOD1 ?US REDUC+ !
  PROP]TIES ON H& 6#DE1 ! SUP]FICIAL
  LOSS W 2 LIMIT$ 6! #AE PROP]TIES
  3SID]$ 6BE REACQUIR$4 ,9 S* CASES1 X
  IS ! ,DE"P;T'S PRACTICE 6ALL[ !
  TAXPAY] 63SID] ! SUP]FICIAL LOSS   #AA
              ,,IT-#DEF;,R           C#D
  Z 2+ EI ! ACTUAL LOSS 9CURR$ ON ANY (
  #AE (! #BJ ITEMS SOLD OR ! AV]AGE LOSS
  P] ITEM MULTIPLI$ 0#AE4 ,IF ! TAXPAY]
  & RELAT$ P]SONS 7SP\SE OR 3TROLL$
  CORPOR,NS7 >E 9VOLV$ 9 ! 4POSI;N &
  ACQUISI;N ( ID5TICAL PROP]TY1 !
  SUP]FICIAL LOSS %D 9ITI,Y 2 DET]M9$ Z
  IF ALL ! "PIES 7 "O P]SON &
  SUBSEQU5TLY PRORAT$ ON ! BASIS (
  ACTUAL SUB/ITUT$ PROP]TY HELD 0A P]SON
  AT ! 5D (! P]IOD4
--------------------------------------#E
       ,CAPITAL ,9T]E/ 9 A ,TRU/
    
#AC4 ,9 -PUT+ ! ,,ACB (A CAPITAL 9T]E/
  (A TAXPAY] 9 A TRU/1 O!R ?AN AN 9T]E/
  9 A 8P]SONAL TRU/0 7SEE #AF 2L7
  ACQUIR$ 0! TAXPAY] = NO 3SID],N OR AN
  9T]E/ (! TAXPAY] 9 ^? TRU/S REF]R$ 6IN
  #AE 2L1 ! TAXPAY] %
  7A7 DEDUCT "U SUBP>AGRAPH
    #EC7#B77H77;I7 ANY AM.T PD 6!
    TAXPAY] 0! TRU/ AF #AIGA & 2F ! "T
    (! -PUT,N Z A 4TRIBU;N OR        #AB
              ,,IT-#DEF;,R           A#E
    PAY;T ( CAPITAL 0! TRU/1 O!R ?AN Z
    PROCE$S ( 4POSI;N (! 9T]E/ OR "P
    "!(1 ..6! EXT5T T S* AM.T 2CAME
    PAYA# 2F .#AIHH1
  7B7 DEDUCT "U SUBP>AGRAPH
    #EC7#B77H77I4#A7 ANY AM.T T HAS
    2COME PAYA# 6! TAXPAY] .AF .#AIHG
    7SUBJECT 6! TRANSI;NAL RULES 4CUSS$
    9 #AD 2L7 & 2F ! "T (! -PUT,N 9
    RESPECT ( T 9T]E/1 O!R ?AN Z PROCE$S
    ( 4POSI;N ( ALL OR "P ( AN 9T]E/1
    EXCEPT 6! EXT5T (! POR;N
    7;I7 T HAS BE5 9CLUD$ 9 ! TAXPAY]'S
      9COME 0R1SON ( SUBSEC;N #AJD7#AC7
      OR1 ": ! TAXPAY] IS N RESID5T 9
      ,CANADA1 T IS SUBJECT 6,"P ,,XIII
      TAX 0R1SON ( P>AGRAPH #BAB7#A77C71
      OR
    7;II7 T1 ": ! TRU/ 0 RESID5T 9
      ,CANADA "?\T XS TAX,N YE> 9 : !
      AM.T 2CAME PAYA#1
      ,A4 IS EQUAL 6"O-?IRD 7"O-HALF IF
        PAYA# 2F #AIIJ7 (! NET TAXA#
        CAPITAL GA9S (! TRU/         #AC
              ,,IT-#DEF;,R           B#E
        DESIGNAT$ 0! TRU/ "U SUBSEC;N
        #AJD7#BA7 9 RESPECT (! TAXPAY]1
        OR
      ,B4 REPRES5TS NON-TAXA# DIVID5DS
        (! TRU/ DESIGNAT$ 0! TRU/ "U
        SUBSEC;N #AJD7#BJ7 9 RESPECT (!
        TAXPAY]1
  7C7 DEDUCT "U SUBP>AGRAPH
    #EC7#B77H77;II7 ANY AM.T DEDUCT$ =
    PO/ #AIHA TAX,N YE>S 0! TAXPAY] "U
    SUBSEC;N #ABG7#E7 9 CALCULAT+ ! TAX
    O!RWISE PAYA# "U ,"P #A = TAX,N YE>S
    5D+ 2F ! "T (! -PUT,N 9 RESPECT ( AN
    9VE/;T TAX CR$IT ALLOCAT$ 0! TRU/
    PURSUANT 6SUBSEC;N #ABG7#G71
  7D7 DEDUCT "U SUBP>AGRAPH
    #EC7#B77H77;III7 ! AM.T ( %>E-
    PUR*ASE TAX CR$IT ALLOCAT$ 6!
    TAXPAY] AF ! #AIHB TAX,N YE> 0! TRU/
    & A4$ "U SUBSEC;N #ABG.B7#C7 9
    CALCULAT+ ! TAX O!RWISE PAYA# "U ,"P
    #A =A TAX,N YE> 5D+ 2F OR AF ! "T (!
    -PUT,N1
                                     #AD
              ,,IT-#DEF;,R           C#E
  7E7 DEDUCT "U SUBP>AGRAPH
    #EC7#B77H77;IV7 #EJ@3P (! AM.T ( ANY
    SCI5TIFIC RESE>* TAX CR$IT ALLOCAT$
    6! TAXPAY] AF ! #AIHB TAX,N YE> & 2F
    ! "T (! -PUT,N 0! TRU/ "U SUBSEC;N
    #ABG.C7#C71 &
--------------------------------------#F
  7F7 DEDUCT "U SUBP>AGRAPH
    #EC7#B77H77;V7 ! AM.T ( ANY ASSI/.E
    RCVD 0! TAXPAY] 2F ! "T (! -PUT,N F
    A GOV]N;T1 MUNICIPAL;Y OR O!R PUBLIC
    AU?OR;Y T HAS RESULT$ 9 A REDUC;N 6!
    TRU/ "U SUBSEC;N #AC7#G.B7 (!
    CAPITAL CO/ (A DEPRECIA# PROP]TY
    ACQUIR$ AF ,MAY #I1 #AIHE4
  
  ,! ABV -;TS APPLY AL 6A UNIT 9 A UNIT
  TRU/ :1 Z M5;N$ 9 #A ABV1 IS 4CUSS$ 9
  ,,IT-#CIJ &! ,SPECIAL ,REL1SE 6X4 ,)
  RESPECT TO 7A7 ABV1 "O SITU,N 6: ^?
  -;TS WD APPLY IS ! CASE ( 5CROA*;T ^U
  ! CAPITAL 9 FAV\R (! CAPITAL
  B5EFICI>Y4 ,X IS N ! ,DE"P;T'S
  PRACTICE 6APPLY ! PROVI.NS (       #AE
              ,,IT-#DEF;,R           A#F
  SUBP>AGRAPH #EC7#B77H77;I7 6REDUCE !
  ,,ACB (! CAPITAL 9T]E/ 9 A TRU/ ": X
  IS CLE> T ! PAY;T F ! TRU/ REPRES5TS A
  4TRIBU;N ( TAX-PD 9COME1 9CLUD+
  CAPITAL GA9S TAX$ 9 ! TRU/ Z WELL Z !
  UNTAX$ POR;N ( CAPITAL GA9S1 EV5 ?\<
  "S OR ALL ( ^? AM.TS MAY 2 3SID]$ 6=M
  "P (! TRU/ CAPITAL4
#AD4 ,": ! TRU/ 0 CR1T$ 2F ,OCTOB] #B1
  #AIHG1 TRANSI;NAL RULES PROVIDE T 9
  RESPECT ( AN AM.T T 2COMES PAYA# 6A
  TAXPAY] 9 A TAX,N YE> (! TRU/ 5D+ 2F
  #AIIJ1 ! -;TS 9 #AC7B7 ABV % N APPLY )
  RESPECT 6! POR;N "!( T MAY R1SONABLY 2
  3SID]$ 6H BE5 DEDUCT$ Z A T]M9AL LOSS
  "U SUBSEC;N #BJ7#AF71 Z CAPITAL CO/
  ALL[.E "U P>AGRAPH #BJ7L77A7 OR Z A
  DEPLE;N ALL[.E "U SUBSEC;N #FE7L7 9
  -PUT+ ! 9COME (! TRU/ =! YE>1 ":
  7A7 S* POR;N IS DESIGNAT$ 0! TRU/ 9
    RESPECT (! TAXPAY] & N 9 RESPECT (
    ANY O!R B5EFICI>Y "U ! TRU/ & DOES N
    EXCE$ ! PROPOR;N (! A7REGATE ( AM.TS
                                     #AF
              ,,IT-#DEF;,R           B#F
    T ! TRU/ S DESIGNATES 9 RESPECT (
    ALL B5EFICI>IES =! YE> T
    7;I7 ! TAXPAY]'S %>E (! 9COME (!
      TRU/ =! YE> -PUT$ )\T REF];E 6!
      ,ACT
  IS (
    7;II7 ! 9COME (! TRU/ =! YE> -PUT$
      )\T REF];E 6! ,ACT1
  7B7 NO B5EFICIAL 9T]E/ 9 ! TRU/ IS
    CR1T$ 2F ! 5D (! YE> & AF ,OCTOB]
    #A1 #AIHG 7O!R ?AN PURSUANT 6! T]MS
    (A PROSPECTUS1 PRELIM9>Y PROSPECTUS1
    REGI/R,N /ATE;T1 (F]+ MEMOR&UM OR
    NOTICE FIL$ 2F ,OCTOB] #B1 #AIHG )A
    PUBLIC AU?OR;Y 9 ,CANADA1 ": S*
    DOCU;T 0 REQUIR$ 0LAW 6BE S FIL$ 2F
    TRAD+ 9 ! SECURITIES CD -M;E71 &
  7C7 "! HAS N BE5 A SUB/ANTIAL 9CR1SE 9
    ! 9DEBT$;S (! TRU/ 2F ! 5D (! YE> &
    AF ,OCTOB] #A1 #AIHG 7O!R ?AN Z A
    3SEQU;E ( AN AGREE;T 9 WRIT+ 5T]$
    962F ,OCTOB] #B1 #AIHG74
  
                                     #AG
              ,,IT-#DEF;,R            #G
  ,^! TRANSI;NAL RULES D N APPLY 6A UNIT
  TRU/4 ,Z NOT$ ABV1 UNIT TRU/S >E
  4CUSS$ 9 ,,IT-#CIJ &! ,SPECIAL ,REL1SE
  6X4
#AE4 ,! -;TS 9 #AC ABV D N APPLY TO
  7A7 A TRU/ REF]R$ 6IN SUBP>AGRAPH
    #AJH7#A77J77;II7 7I4E41 A TRU/
    GOV]N$ 0C]TA9 REGI/]$ FUNDS OR
    PLANS1 AN EMPLOYEE TRU/ OR A 8MA/]
    TRU/0 REF]R$ 6IN P>AGRAPH
    #ADI7#A77O4#D771
  7B7 A RELAT$ SEGREGAT$ FUND TRU/
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