Did you think about Flow through for yourself.Lets say you take $10,000 in flow hrough @ .50 with a 1/2 wt outside of bank account
You will get your 20,000 share certificate marked with the hold restriction on the reverse.
You have to hold the cert for 4 months to deposit it into an account.
You will also get a T101 showing a 10,000 tax credit when entered on your taxes reduces your income by 10k . The shares now have a zero tax base so when sold they go into the capital gains side of income, Taxed at 50%
If you deposit the cert into your RRSP you get another t slip as a contribution at the trading price of the day... Deamed sold for tax perposes, that is the capital gains portion you would pay 50% tax on.... But this is offset by the Contribution to your RRSP of 100% of the value on the deposit date. Your bank will send you a T slip for this.
You also get a 15% ITC noted no the T101 which is a non refundable tax credit you apply to Tax on Earned income.
Lets say the price on the date of deposit into your RRSP is the same as you bought it.
Therefore you take $10,000 off your income
Deposit to RRSP... Adds 10,000 to capital gains income as deamed sold but @ 50% tax rate...
The RRSP deduction is 10,000
Thus net 15,000 off your income and a 1,500 ITC credit for a 10,000 initial investment
Net cost of the shares is about 50%
And you have a wt just in case it was actually an investment.
That why flow through is an easy sell Wouldnt you like a taste of that action...JMHO