Roman Jaskolski
RADIO SHALOM CJRS1650 AM/
October 13th live
MONEY AND BUSINESS SHOW AT 4PM LIVE
www.radio-shalom.ca
MONEY MONEY & BUSINESS /
http://www.radio-shalom.ca/EN/showemissionsall.php?ID=1042
http://www.radio-shalom.ca/EN/player.php?URI=/../mp3/Programs/1042/1124.mp3
listen to show
There aren't many legitimate tax shelters for for investors and
high-income entrepreneurs , let alone many that offer the potential
for lucrative returns ,Most investors know only how to take advantageof RRSP contribution and Tax savings accounts to reduce their taxes. But that's the promise of flow-through shares. Issued by Canadiancompanies in the energy or mining sectors to raise funds forexploration, flow-throughs give investors juicy tax breaks and the opportunity for capital appreciation based on new discoveries and rising commodity prices. Resource companies typically have huge upfront exploration costs and little or no revenue. That means they don't need the tax deductions they would incur as income-generating companies. So to finance that exploration, they'll issue shares and allow the tax deductions to "flow through" to investors. Essentially,exploration or mining companies who issue flow-through shares renounce the deductions that would normally be available to the company and provide the deduction to the investor. So in order for the investor to benefit from the flow-through sharesthe company must spend the flow-through dollars on exploration in Canada. This includes most non-development stages of mining including ground sampling,geophysics, drilling, etc. At present, Quebec offers the largest potential tax savings for flow-through share investments followed by British Columbia, Manitoba, Saskatchewan and Ontario According to the PDCA ( Prospectors and Developers Association of Canada) the Canadian mineral exploration sector has averaged over one discovery per month since the enhanced flow-through program was introduced in October, 2000.
The resource sector is cyclical by nature, and exploration is risky ,
is there a guarantee that there will be a discovery or discoveries ?
And are Flow-through the right investment for you ? And can also
withstand a little volatility in portfolio for tax purposes ?
Live today on money and business , in our studios to talk about Flow Through shares and their tax advantage , we have Mr Roman Jaskolski an investment advisor from Richardson GMP Limited in Montreal;
http://www.richardsongmp.com/
My name is Samuel Ezerzer thank you for tuning in to Money and Business on radio shalom CJRS 1650 AM in Montreal, the financial Capital of Canada...I am a Financial Consultant for T E Wealth , Financial Consultants specializing in financial planning , Investment Management , and retirement planning ,and if you have any questions on money and business show or please give me a call directly at 514 738 4100 ext 272 or you can visit our website at www.radio-shalom.ca and listen on live stream and check our archives. You may also email me with your questions or suggestions on today’s show at moneyandbusinesshow@gmail.com and I will reply to your questions, and if you need to have your financial analysis and planning please email me at sezerzer@temirador.com
Our live topic of discussion today; Flow Through Shares and their tax advantage , and how can you as an investor profit !!
I know it’s early to be talking about Canadian tax saving strategies ,
but I thought I would talk about flow through shares on today's showsince it doesn’t seem like there’s much information out there on this topic. Besides, it’s never too early to be talking about taxes!
BIOGRAPHY
Mr Roman Jaskoslki from Richardson GMP Limited in Montreal,
He is an Investment advisor and focuses specifically on the tax
advantage of Flow Through Shares and an innovator on pension options including Individual Pension Plans; Having spent his entire career in the financial industry , Roman also writes and sends out 2 or 3 times a week a nationally syndicated Business commentary to help investor on why and how the economy are constantly evolving ...
Questions
SAM -
Welcome to the money & business show Roman ,
Roman ------ thank you for inviting me on the money and business show
on radio shalom
sam -
Roman when i was writing up your bio I came across that you where
involved in rodeo many years back ? Horses or bulls you where riding..
Roman ..........
SAM-
Roman we are going to talk about your weekly business commentaries
that i have been receiving in the past week or so in the last segment
of the show , last week The U.S. economy unexpectedly shed 95,000 jobs
in September for a fourth straight month, as government payrolls fell
and private hiring was less than expected, hardening expectations of
further Federal Reserve action to spur the economy ,,,In Canada, the
unemployment rate went to 8% from 8.1% as fewer people looked for work
;
lets hear a clip from Bank of Canada Governor Mark Carney on the
Canadian economy that will grow at a "modest pace" in the coming
months .
http://stage.bnn.ca/News/2010/9/30/Mark-Carney-warns-of-modest-growth.aspx
We heard the bank governor of canada Mark Carney talk about modest
growth in the coming month ....Roman Given the soft job reports on
both sides of the border , do you think the bank of Canada will raise
interest rates in the future ?
Disclaimer ;Please because of the subject matter on flow through
shares that deals with tax issues and has medium risk for the
investors , please talk to your investment advisor or tax account
before buying flow through shares and do your due diligence , or you
can contact Mr roman jaskoslky for more information ...
Questions re. Flow-Through Shares
1. Roman – So roman not many financial advisor advise their clients
about flow through shares and their tax advantage , what attracted you
or motivated you to talk about these flow through shares , and can you
also tell us a short profile on Richardson GMP Limited ...
2. Today’s topic is flow-through shares – Roman could you give a us a
brief description of what flow-through shares are? And can you give us
a simple example ?
Flow-through shares have been around since 1954. They are now more
accessible than ever, with a minimum investment as low as $2,500.
The governments of Canada and Quebec give tax credits to resource
mining companies that do exploration and development and the companies
can then transfer these tax credits to individual investors as tax
deductions.
These tax deductions are admissible against all kinds of income.
3.Can the average investor invest in the these flow throughs or What
or who is the market for flow-through shares?
Of course, high net worth individuals or anyone wanting to maximize
their after tax net worth.
They can also be used for .............
4. Income tax benefits to individual investors will vary, depending on
the taxpayer's jurisdiction of residence for income tax purposes and
marginal tax rate. Are there advantages for Quebec vs. Canadian
residents when purchasing flow-through shares?
A. Yes there are. Two very important ones: first Quebec gives you a
150% tax deduction vs. Canada a 100% deduction and when the flow
through shares “roll-over” Quebec gives you a capital gains
exoneration which Canada does not for your income tax deductions.
Let’s pretend you bought $10K worth of flow through shares. Let’s
pretend you make the big bucks, and your Marginal Tax Bracket is 43.7%
When you get your tax refund- if you work as an employee, you will get
$4370 back, meaning you will have tax savings of $4370. This
works by multiplying $10,000 x 43.7%= $4370.(It’s just like an RRSP-
whatever you contribute, you get a tax savings of your marginal tax
bracket) However, there’s a catch. When you sell your flow through
shares- let’s assume for simplicity’s sake that you neither make nor
lose money on the $10,000 you invested, the adjusted cost base is $0-
so the capital gain is considered $10,000. So that tax you would have
to pay when you sell is: $10,000/2=$5000x 43.7%=$2185.
5 What are some of the uses for flow-through shares?
a. Reduce your capital gains; give example of selling a duplex or cottage.
b. Receiving a double tax deduction when combining them with your RRSP
contribution.
c. Eliminating or reducing your O.A.S. benefit claw back.
Sam
to recap what are Flow Through Shares for those who are tuning in :
Basically an investment that has intense tax advantages (which means
you get a big refund income tax refund time).
Primarily involves investments in the Oil and Gas Industry, the Mining
Industry, and the Wind Power Industry;
The investment is 100% tax deductible against your income;
After a certain period (usually 1-2 years) your shares will roll over
into a mutual fund which you can sell at any time;
It turns fully taxable income into future tax advantaged capital gains;
You have to look at the Marginal Tax Bracket you’re in to see how much
money you will get back come refund time;
The higher your pay (the more taxes you pay), the more you’ll get out of this
6. With the market volatility that we’ve seen recently in the past few
years , is this a good time to purchase flow-through shares?
It is one of the best times ever to purchase quality flow-through
shares. The recent financial crisis had pushed down all metal and
resource prices. Now, as we go through the recovery, metal prices are
rising and many exploration companies are enjoying record profits.
7. Is the accountant or tax specialist involved?
A. Absolutely. While we can show you the approximate after tax
savings, it is your accountant that intimately knows your financial
status and I always enjoy working alongside with them.
8. So when Can you buy / sell this investment and how does it work?
This investment does not trade like a stock. Once you buy it, you must
hold it until it rolls over or matures
disclaimer ; Please because of the subject matter on flow through
shares that deals with tax issues and has medium risk for the
investors , please talk to your investment advisor or tax account
before buying flow through shares and do your due diligence , or you
can contact Mr roman jaskoslky for more information ...
9. Well then, how long do you need to hold this investment?
The holding period is anywhere from 5 months to a max of 2 years. The
issuing company decides when it is most advantageous to rollover the
investment into a mutual fund.
Once the funds “rollover” they are paid back to the investor.
10. Roman Past performance cannot guarantee future returns and most
flow-through investments are considered high to medium risk due to the
nature of resource exploration and sensitivity to resource prices.
This almost sounds too good to be true. What is the track record of
this type of investment and can you lose your money?
Looking back over the last 10 years, I have the track record of all
the flow-through offerings that have been made by the leading company
in Quebec. It would be a pleasure to send them to anyone who is
interest, if you would contact me.
Over the last 10 years this company’ flow-through shares only lost
money in 2007 when we had the financial crisis and stock markets
tumbled in the 2007 – 2008 period almost 55%. Clearly, 2007 was an
anomaly, a once in a lifetime event.
If we include 2007, the net average return on investment in
flow-through shares is 55.5%. If we exclude 2007, then the average net
return on investment in flow-through shares after a holding period of
1 ½ years is 84%.
11. Very interesting. By the way Roman, I receive regularly your
Business Commentary. Can you tell me a little bit about your
publication?
Summary of flow troughs shares
FLOW THROUGH SHARES PROS:
It’s a nice tax shelter from the government (as we know, there are few
tax shelters!);
If you’re in a high tax bracket, it’s one way to not have to be gauged
in paying taxes;
You help stimulate the Canadian economy ;
FLOW THROUGH SHARES
When you sell, the adjusted cost base is $0, so whatever you have is
considered a capital gain;
They can be risky;
They are often sold at a premium;
It would be supportive of the oil and gas industry, mining.. I guess
that’s what Canada is all about, but if you have issues with it in
terms of the environmental consequences of supporting exploration
companies, then it might not be for you;
Doing the taxes for flow through shares is complicated. You’ll
probably need to get an accountant involved (which might incur extra
costs)
RADIO SHALOM CJRS1650 AM/
October 13th live
MONEY AND BUSINESS SHOW AT 4PM LIVE
www.radio-shalom.ca
MONEY MONEY & BUSINESS /
http://www.radio-shalom.ca/EN/showemissionsall.php?ID=1042
http://www.radio-shalom.ca/EN/player.php?URI=/../mp3/Programs/1042/1124.mp3
listen to show
There aren't many legitimate tax shelters for for investors and
high-income entrepreneurs , let alone many that offer the potential
for lucrative returns ,Most investors know only how to take advantageof RRSP contribution and Tax savings accounts to reduce their taxes. But that's the promise of flow-through shares. Issued by Canadiancompanies in the energy or mining sectors to raise funds forexploration, flow-throughs give investors juicy tax breaks and the opportunity for capital appreciation based on new discoveries and rising commodity prices. Resource companies typically have huge upfront exploration costs and little or no revenue. That means they don't need the tax deductions they would incur as income-generating companies. So to finance that exploration, they'll issue shares and allow the tax deductions to "flow through" to investors. Essentially,exploration or mining companies who issue flow-through shares renounce the deductions that would normally be available to the company and provide the deduction to the investor. So in order for the investor to benefit from the flow-through sharesthe company must spend the flow-through dollars on exploration in Canada. This includes most non-development stages of mining including ground sampling,geophysics, drilling, etc. At present, Quebec offers the largest potential tax savings for flow-through share investments followed by British Columbia, Manitoba, Saskatchewan and Ontario According to the PDCA ( Prospectors and Developers Association of Canada) the Canadian mineral exploration sector has averaged over one discovery per month since the enhanced flow-through program was introduced in October, 2000.
The resource sector is cyclical by nature, and exploration is risky ,
is there a guarantee that there will be a discovery or discoveries ?
And are Flow-through the right investment for you ? And can also
withstand a little volatility in portfolio for tax purposes ?
Live today on money and business , in our studios to talk about Flow Through shares and their tax advantage , we have Mr Roman Jaskolski an investment advisor from Richardson GMP Limited in Montreal;
http://www.richardsongmp.com/
My name is Samuel Ezerzer thank you for tuning in to Money and Business on radio shalom CJRS 1650 AM in Montreal, the financial Capital of Canada...I am a Financial Consultant for T E Wealth , Financial Consultants specializing in financial planning , Investment Management , and retirement planning ,and if you have any questions on money and business show or please give me a call directly at 514 738 4100 ext 272 or you can visit our website at www.radio-shalom.ca and listen on live stream and check our archives. You may also email me with your questions or suggestions on today’s show at moneyandbusinesshow@gmail.com and I will reply to your questions, and if you need to have your financial analysis and planning please email me at sezerzer@temirador.com
Our live topic of discussion today; Flow Through Shares and their tax advantage , and how can you as an investor profit !!
I know it’s early to be talking about Canadian tax saving strategies ,
but I thought I would talk about flow through shares on today's showsince it doesn’t seem like there’s much information out there on this topic. Besides, it’s never too early to be talking about taxes!
BIOGRAPHY
Mr Roman Jaskoslki from Richardson GMP Limited in Montreal,
He is an Investment advisor and focuses specifically on the tax
advantage of Flow Through Shares and an innovator on pension options including Individual Pension Plans; Having spent his entire career in the financial industry , Roman also writes and sends out 2 or 3 times a week a nationally syndicated Business commentary to help investor on why and how the economy are constantly evolving ...
Questions
SAM -
Welcome to the money & business show Roman ,
Roman ------ thank you for inviting me on the money and business show
on radio shalom
sam -
Roman when i was writing up your bio I came across that you where
involved in rodeo many years back ? Horses or bulls you where riding..
Roman ..........
SAM-
Roman we are going to talk about your weekly business commentaries
that i have been receiving in the past week or so in the last segment
of the show , last week The U.S. economy unexpectedly shed 95,000 jobs
in September for a fourth straight month, as government payrolls fell
and private hiring was less than expected, hardening expectations of
further Federal Reserve action to spur the economy ,,,In Canada, the
unemployment rate went to 8% from 8.1% as fewer people looked for work
;
lets hear a clip from Bank of Canada Governor Mark Carney on the
Canadian economy that will grow at a "modest pace" in the coming
months .
http://stage.bnn.ca/News/2010/9/30/Mark-Carney-warns-of-modest-growth.aspx
We heard the bank governor of canada Mark Carney talk about modest
growth in the coming month ....Roman Given the soft job reports on
both sides of the border , do you think the bank of Canada will raise
interest rates in the future ?
Disclaimer ;Please because of the subject matter on flow through
shares that deals with tax issues and has medium risk for the
investors , please talk to your investment advisor or tax account
before buying flow through shares and do your due diligence , or you
can contact Mr roman jaskoslky for more information ...
Questions re. Flow-Through Shares
1. Roman – So roman not many financial advisor advise their clients
about flow through shares and their tax advantage , what attracted you
or motivated you to talk about these flow through shares , and can you
also tell us a short profile on Richardson GMP Limited ...
2. Today’s topic is flow-through shares – Roman could you give a us a
brief description of what flow-through shares are? And can you give us
a simple example ?
Flow-through shares have been around since 1954. They are now more
accessible than ever, with a minimum investment as low as $2,500.
The governments of Canada and Quebec give tax credits to resource
mining companies that do exploration and development and the companies
can then transfer these tax credits to individual investors as tax
deductions.
These tax deductions are admissible against all kinds of income.
3.Can the average investor invest in the these flow throughs or What
or who is the market for flow-through shares?
Of course, high net worth individuals or anyone wanting to maximize
their after tax net worth.
They can also be used for .............
4. Income tax benefits to individual investors will vary, depending on
the taxpayer's jurisdiction of residence for income tax purposes and
marginal tax rate. Are there advantages for Quebec vs. Canadian
residents when purchasing flow-through shares?
A. Yes there are. Two very important ones: first Quebec gives you a
150% tax deduction vs. Canada a 100% deduction and when the flow
through shares “roll-over” Quebec gives you a capital gains
exoneration which Canada does not for your income tax deductions.
Let’s pretend you bought $10K worth of flow through shares. Let’s
pretend you make the big bucks, and your Marginal Tax Bracket is 43.7%
When you get your tax refund- if you work as an employee, you will get
$4370 back, meaning you will have tax savings of $4370. This
works by multiplying $10,000 x 43.7%= $4370.(It’s just like an RRSP-
whatever you contribute, you get a tax savings of your marginal tax
bracket) However, there’s a catch. When you sell your flow through
shares- let’s assume for simplicity’s sake that you neither make nor
lose money on the $10,000 you invested, the adjusted cost base is $0-
so the capital gain is considered $10,000. So that tax you would have
to pay when you sell is: $10,000/2=$5000x 43.7%=$2185.
5 What are some of the uses for flow-through shares?
a. Reduce your capital gains; give example of selling a duplex or cottage.
b. Receiving a double tax deduction when combining them with your RRSP
contribution.
c. Eliminating or reducing your O.A.S. benefit claw back.
Sam
to recap what are Flow Through Shares for those who are tuning in :
Basically an investment that has intense tax advantages (which means
you get a big refund income tax refund time).
Primarily involves investments in the Oil and Gas Industry, the Mining
Industry, and the Wind Power Industry;
The investment is 100% tax deductible against your income;
After a certain period (usually 1-2 years) your shares will roll over
into a mutual fund which you can sell at any time;
It turns fully taxable income into future tax advantaged capital gains;
You have to look at the Marginal Tax Bracket you’re in to see how much
money you will get back come refund time;
The higher your pay (the more taxes you pay), the more you’ll get out of this
6. With the market volatility that we’ve seen recently in the past few
years , is this a good time to purchase flow-through shares?
It is one of the best times ever to purchase quality flow-through
shares. The recent financial crisis had pushed down all metal and
resource prices. Now, as we go through the recovery, metal prices are
rising and many exploration companies are enjoying record profits.
7. Is the accountant or tax specialist involved?
A. Absolutely. While we can show you the approximate after tax
savings, it is your accountant that intimately knows your financial
status and I always enjoy working alongside with them.
8. So when Can you buy / sell this investment and how does it work?
This investment does not trade like a stock. Once you buy it, you must
hold it until it rolls over or matures
disclaimer ; Please because of the subject matter on flow through
shares that deals with tax issues and has medium risk for the
investors , please talk to your investment advisor or tax account
before buying flow through shares and do your due diligence , or you
can contact Mr roman jaskoslky for more information ...
9. Well then, how long do you need to hold this investment?
The holding period is anywhere from 5 months to a max of 2 years. The
issuing company decides when it is most advantageous to rollover the
investment into a mutual fund.
Once the funds “rollover” they are paid back to the investor.
10. Roman Past performance cannot guarantee future returns and most
flow-through investments are considered high to medium risk due to the
nature of resource exploration and sensitivity to resource prices.
This almost sounds too good to be true. What is the track record of
this type of investment and can you lose your money?
Looking back over the last 10 years, I have the track record of all
the flow-through offerings that have been made by the leading company
in Quebec. It would be a pleasure to send them to anyone who is
interest, if you would contact me.
Over the last 10 years this company’ flow-through shares only lost
money in 2007 when we had the financial crisis and stock markets
tumbled in the 2007 – 2008 period almost 55%. Clearly, 2007 was an
anomaly, a once in a lifetime event.
If we include 2007, the net average return on investment in
flow-through shares is 55.5%. If we exclude 2007, then the average net
return on investment in flow-through shares after a holding period of
1 ½ years is 84%.
11. Very interesting. By the way Roman, I receive regularly your
Business Commentary. Can you tell me a little bit about your
publication?
Summary of flow troughs shares
FLOW THROUGH SHARES PROS:
It’s a nice tax shelter from the government (as we know, there are few
tax shelters!);
If you’re in a high tax bracket, it’s one way to not have to be gauged
in paying taxes;
You help stimulate the Canadian economy ;
FLOW THROUGH SHARES
When you sell, the adjusted cost base is $0, so whatever you have is
considered a capital gain;
They can be risky;
They are often sold at a premium;
It would be supportive of the oil and gas industry, mining.. I guess
that’s what Canada is all about, but if you have issues with it in
terms of the environmental consequences of supporting exploration
companies, then it might not be for you;
Doing the taxes for flow through shares is complicated. You’ll
probably need to get an accountant involved (which might incur extra
costs)
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