Canoe EIT Income 4.80 Cumulative Redeemable Pref shs Series 1 T.EIT.PR.A

RE: new tax law

[OptsyEagle]

It's almost a certainty in my opinion that the tax will go through. It will not effect the withholding tax you pay and effectively you will never see it since it is a tax on the companies that Enervest holds. So it will be paid before the fund gets paid which is before you get paid. It isn't going to help the underlying holdings pay dividends but from a Canadian's perspective, it is just a pre-payment of our taxes since we will get it back in dividend tax credits (if held in a cash account). Unfortuneately, that does not help you very much. To be fair, you need to understand that I (and many other Canadians) personally hold a lot of US stocks. I see them losing 30% in US taxes every year, before I get my dividends, of which the US Gov't then takes another 15% in withholding tax and then I get to pay Canadian taxes on the rest. Do I like this or think it is fair? No. Do I continue to hold them? Yes. Because I beleive that these holdings possess my best ability to grow my wealth on an after tax basis, that is available. You need to look at this the same way. If you find a better alternative. Go for it. That is the way all investors view these things.