RE:RE:Just received tender material from RBC
You pay tax on 50% of capital gains in Canada . With dividends, you get a tax credit but its not straight forward as its value is dependant on your tax bracket. As such, some people may be better off selling into the market or doing nothing (not tendering).In my case, the only shares I would consider tendering are those in my registered account as there are no tax implications as the account holdings are non taxable till you withdraw them. In my taxable accounts, if i sold in the open market, about 60 - 70% of my proceeds would be capital gains (30 - 35% of proceeds would be tax free).As such, it makes no sense to tender these shares.
This also re-inforces my plan to tender all shares in the non taxable account at close to $47 US. IMO - for most taxable accounts, it will not make financial sense to tender any shares. Pension plans are not taxable but other institutional holders may be and so it would not make sense for the taxable ones to tender. A lot of holders may not be tendering. As such, there is a good chance that they do not get the number of shares they want tendered which means all those tendering get their ask price between $42 and $47 us for all shares tendered.
Thanks for the heads up as I had not read the circular in detail.