Alaris Royalty Corp ALARF

RE:RE:So Public trust?

[ckwong]

From the trading perspective, AD.UN can be traded as any dividend based shares. However, the tax implication will be different. It may be too early to say, if the distribution is return of captical partial or total, then the distribution may not have to pay any tax for the return of capital portion until you sell. The returned capital will be used to reduce the cost base. More work to keep track of the cost. For someone dividend tax credit will offset some tax which will lower the tax bracket. For higher income people, the gross up for the dividend will create a much higher tax bracket.

There is more to look at how the distribution will be. For your reference, the following is quoted from the page 2 of the circular:

The after-tax return from an investment in Trust Units to Unitholders subject to Canadian income tax will depend, in part, on the composition of the Trust's income for Canadian income tax purposes from which distributions on the Trust Units will be paid (portions of which may be fully or partially taxable or may constitute tax-deferred distributions which are not subject to tax at the time of receipt but reduce a Unitholder's cost base in the Trust Units for tax purposes). Management intends to determine the composition of the Trust's income for Canadian income tax purposes with the intent of maximizing ultimate value to Unitholders.