Oncolytics Biotech Inc T.ONC

Canada's 2024 Federal Budget increases capital gains tax

[Noteable]

The proposed capital gains tax change to 67.5% from 50%, if adopted, would come into effect on June 25, 2024.

Consequently, any Canadian company looking to be acquired would want to have the acquisition announcement to happen before that date.

As I pointed out, should an acquisition announcement be made before June 25, 2024, the current 50% capital gains tax would be grandfathered-in ... even though the closure date could be sometime after the June 25, 2024.

Otherwise, ONCY and the company's Canadian shareholders will become subject to a 67.5% capital gains tax on the acquisition of ONCY thereafter. 

If ONCY's management is prudent then an all cash acquisition of ONCY is what is necesssary, and would happen before June 25, 2024.

If they aren't, then everyone stands to loose a significant portion of their capital gains through the increase in the inclusion of the capital gains tax announced by the Canadian Federal Government, earlier this week.

[m00nsh0ts]

Note, Your first post on this subject stated that applied to businesses Is that correct? Our management and directors are individuals so it would not include them. It's a 35% increase. I can't believe it will pass..

[Noteable]

Our management and directors are individuals so YES it would include them - just as it would the shareholders of the company.

[Noteable]

The Canadian government said it would increase the inclusion rate of the capital gains tax from one-half to two thirds on capital gains above $250,000 per year for individuals, and on all capital gains realized by corporations and trusts. The inclusion rate for capital gains realized annually up to $250,000 by individuals will continue to be one-half. The lifetime capital gains

[canadafan]

The capital gains tax, would be effective for those with a capital gain. First point if understanding, the tax would be on the " gain", meaning difference between what you bought for & eventually selling shares for. In Canada presently 1/2 of capital gains are taxed at the persons rate. Assuming for example you are in a 30% marginal tax bracket. Further for math example, you sell

[Noteable]

Regardles of the convoluted rhertoric posted by canadafan about being thrilled to pay taxes, I will be considerably less "thrilled" about paying more taxes after June 25, 2024, when it is in ONCY power to become acquired by then and they choose otherwise..

[canadafan]

Yes, my friend Notable. Do understand the taxable change will only apply to individual gains above $250,000 What we don't know, is the in- place negotiations. Assuming for example, they do announce a $5billion buyout. being about $60/ps. What is individual is your average cost base? The math is based on your personal costs. & for obvious reasons , everyone will be different

[Noteable]

Life time capital gains of $250k, my friend! Which means anyone who has more investments than just ONCY., is affected and which again shows that your simple math doesn't think much beyond ONCY.

[ENEMENEMYNEMO]

You're off base Note...it's 250k annually...

[canadafan]

Respectfully, please go back & read the rules. i5 is based on over $250,000/ year. There are lifetime exemptions, are one issue. the tax rules change applies to capital gains in excess of $250k/ year. you do a lot or reading & resurch. please look that one up. and, you do have a point. This is afterall an Onc site. So my math applies to Onc shares, which was the original context of th3

[Noteable]

canadafan - what you seem to be overlooking is that a buyout or acquisition of a company is a one time event that is not spread out over multiple years as you have irroneously tried to pass off by saying that the new exemption is $250K per year. Well I am not interested in an acquistion or disposition of ONCY happening over multiple years. Like other acquiitions of companies - the event is a one

[Noteable]

https://budget.canada.ca/2024/report-rapport/chap8-en.html

[canadafan]

I understand that very well. You fail to understand the taxable portion will apply to each shareholder. The corporation is not being taxed a a whole. Again, the shareholders own the shareholders own the shares. onc does nit own its own shares. The taxable gain will accrue to the shareholders. So, as an Onc sharholder my additional taxes, as applicable to the date, Only come into effect above

[Noteable]

No xanadafan you can't seem to grasp that I don't care about the corporation's tax treatment. I am only concerned about the tax change that each shareholder will individually have to endure. I don't know why you keep bringing up corporate tax liabilities or ideas about that the company is not taxed as a whole. I KNOW THAT.  Read what I wrote. Perhaps I wasn't clear enough

[13X2413]

Oh gawd! Why the talk about capital gains? Just hoping for a miracle that gets me out of my capital LOSS situation. Capital gains are a pipedream.  If I get close to break even, I'll be as happy as a pig in s**t. 

[Noteable]

numbers x numbers your response is completely expected coming from you. 

[Buckhenry]

Them woke pumpers  still ridiculing anyone that does not blindly support their narrative.  They even appear to be eating their own kind.  My oh my... 

[Azzak34]

Bucko what's woke got to do with anything? Are you voting for the orange guy this year? 

[Peladawn]

Azzak....everybody had better vote for "the orange guy" this year,  or the US is finished.

[Azzak34]

Going to be an interesting year either way! Yanks, Brits and Canadians are in for a bumpy one! 

[Peladawn]

This year will be merely an inflexion point, which will decide whether the entire world goes forth in peace, or in war.....in prosperity or another Great Depression.

[ENEMENEMYNEMO]

Nah...it'll be the same garbage...spread fear, control the feeble minded, print more money... repeat. We'll all be long gone before this catches up to us, Pumpkin head or not.  

[ENEMENEMYNEMO]

...I'm definitely in the feeble minded side...

[Azzak34]

Never a truer word spoken. You're as feeble minded as it gets. 

[ENEMENEMYNEMO]

Scary thing is though....if I'm feeble minded then what does that make you? Quick question Asscrack...do you have a PCW?

[Azzak34]

Haha did you just do the "I know you are but what am I defence"?  See how I used the question mark again after a question....?

[ENEMENEMYNEMO]

Enough said...

[Azzak34]

Enough said!!!

[Noteable]

Should read: 17.5% increase in capital gain increase and not 12.5% as I mistakenly stated.