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E-L Financial Corp Ltd T.ELF

Alternate Symbol(s):  T.ELF.P.F | T.ELF.P.G | T.ELF.P.H | ELFIF

E-L Financial Corporation Limited is a Canada-based investment and insurance holding company. The Company operates through two segments: E-L Corporate and Empire Life. E-L Corporate segment represents investments in stocks and fixed income securities held directly and indirectly through pooled funds, closed-end investment companies and other investment companies. The investment strategy is to accumulate shareholder value through long-term capital appreciation and dividend and interest income from its investments. Empire Life segment offers individual and group life and health insurance, investment and retirement products to Canadians. The segment provides a range of life insurance and wealth management products, employee benefit plans and financial services to meet the needs of individuals, professionals and businesses through a network of Independent Financial Advisors (IFA), Managing General Agents (MGA), National Account firms and Group Solutions brokers and representatives.


TSX:ELF - Post by User

Post by BB123456on Aug 23, 2022 8:43pm
281 Views
Post# 34915850

SIB - Deemed Dividend

SIB - Deemed DividendThe other factor that will affect how many shares are taken up are the tax consequences.  The paid up value is only $36.45, so even if you buy the stock at $925 and get taken out at $975, you do not pay a capital gain on the $50, but instead the $938.55 counts as dividend income and you must pay tax on this, offset by a capital loss of $913.55.

So, really it only makes sense to play this as an arbitrage situation if you can do so in a registered account where dividends are tax free.

There may be other situatiuons where it makes sense, but look at your tax situation carefully. 
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