RE:RE:Canada's 2024 Federal Budget increases capital gains tax The capital gains tax, would be effective for those with a capital gain.
First point if understanding, the tax would be on the " gain", meaning difference between what you bought for & eventually selling shares for.
In Canada presently 1/2 of capital gains are taxed at the persons rate.
Assuming for example you are in a 30% marginal tax bracket.
Further for math example, you sell your Onc shares for a $1000 profit.
Presently, $500 of that would be taxable @ your 30% = $150 in taxes from that exchange.
Assuming Onc was bought out for xx $ billion.
The capital gains tax would not apply to Onc limited, but the individual sharholders & their individual situations.
Saying that, it would be an obvious benefit for after tax gains, to have a deal done before the new tax rules.
Depending on final outcomes, the tax number would be different for every shareholder.
Looking further out. The outcomes will be decided based on evaluations from the aquiring company.
Meaning WIIFM....what is in it for me"
Should the science prove out that Roche for example, could increase their sales & market of tecentriq, by adding co- therapy with Pelareorep.
The next math then becomes " how much $$ can they add to bottom line by adding Pela" , then add- in a bunch of accounting & forward evaluations. Called present value estimates.
That , would then equate to an aquiring price.
Yes many variables,competition, known & unknown risks , stimated upside..,future additional markets etc.
One thing not a concern is tax rates.
They do not let the tax dog, wag the investment tail.
Keep in mind, corporations or individuals are taxed in the example based on the gain.
ONC does not own its own shares, the shareholders do.
The applied tax would be at each individual shareholders gain, rate etc.
regardless I agree sooner would be better than later.
It is very possible, that on a complete buy- out, some shareholders will pay zero tax. Assuming they never averaged down, their cost could be higher than a buyout price.
Those who bought in the recent lows , would see capital gains & taxed at their rate.
Onc corporate will not be effected by any tax changes. First, they would not be subject to capital gains, ( explained above).
Second they have many millions if accumulated tax losses , to be carried forward. That $$ would apply bin a partership, bringing to the table income & taxable profits.
bottom line.
next to zero impact on Onc as a coperation.
The shaeholders could be owing more taxes on a gain if/ when the shares are sold.
The impact?
for some very little, for some could be significant.
whew....
Asside from all that, I am certain many would be thrilled to be paying a tax on profits from Onc shares.