WELL Health Technologies Corp T.WELL

Taxes & Family Trust

[BigTT13]

https://www.bdc.ca/en/articles-tools/change-ownership/plan-succession/share-transfers-how-minimize-your-taxes

Source: Business Development Bank of Canada  

GLTA

Hamed has grown this company immensely. What have you done in your lifetime? Pretty sure he's earned the right to sell or transfer a few shares for the family. Wouldn't you?

Most of us have a sell price as well. This isn't rocket science guys.

[Possibleidiot01]

Let's try to explain this in very simple terms. People act in their own self interest and insiders make WAY, WAY , MORE MONEY  by making the company more valuable. When you consider Hamed has managed to both transfer these shares ( including exercised options) at a low cost and defer taxes / income split  - why would he sell shares and further depress the price? Basically what you

[BigTT13]

Interesting interpretation.

[jdsd0517]

This thread is full of far too many people that spent 15 minutes on Deloitte's website about estate planning.  A little knowledge truly is a dangerous thing. Truth is (as anyone with an iota of experience in this area knows), he should have done all of this when he first set up WELL.  The fact that he didn't actually does mean two things:  (i) he doesn't see the big

[Possibleidiot01]

As far as i know there is no legal requirement to incorporate a family trust when listing a company. Procascination is a very common human bahaviour.. The second point to consider is the tming ; could it be that now was the right time to transfer assets into the newly created trust as he anticipates large gains off a depressed price.? PI

[Noshortsallowed]

It is deemed a disposition when it is transferred to the trust is considered a sale of the assets and is therefore required to be reported and it was. I suspect that from now on there will be no more reporting obligations with respect to those shares  In terms of tax planning it makes sense to do this at a point when the shares are at the lowest possible price because capital gains is

[Noshortsallowed]

Also tax law in Canada allows the very wealthy to receive dividends and other payments from Trusts tax free so the timing on this is genius. He can sell those shares years from now or tomorrow but my guess is he believes in well as much as ever and if he thought it was going down even further he would have waited for the shares to go even lower so his captial gains tax bill would be lower still

[jdsd0517]

Tax law in Canada allows ANYONE to receive income from a trust on a tax free basis, but that income is taxed in the hands of the recipient.  Like I said earlier, a little knowledge is a dangerous thing...

[jdsd0517]

The lowest possible price was when he first started the company, your comment is silly. Like I said earlier, a little knowledge is a dangerous thing...

[jdsd0517]

There is no legal requirement, but it is a good practice to do it early since there is very low cost basis to the company when it is initially founded.  If he was anticipating large gains, wouldn't those have been even larger right at the beginning? Like I said earlier, a little knowledge is a dangerous thing...