RE:RE:PALI VS NFG AS AN INVESTMENT AS WELL AS THE FUTURE FOR BOTHnozzpack wrote: " AS Collin Kettell pointed out to me in an email, PALI could realize this price if NFG is sold but PALI would be subject to corporate taxes on the sale "
If CK told you this, he really is without a clue about PALI of which he is the majority shareholder .
PALI has investments losses of nearly $200 million , mostly from their investment losses in NFG.
That should negate and protect any investment gains from Income tax..
In any event , your calculation of income tax is way out to lunch ...
if Pali sells NFG shares at a profit from their extremely low cost base they would pay taxes at 66 2/3 inclusion rate up from the 50% before this bad budget ( that's another matter) but they can also pay a dividend to its shareholders and then get the refundable tax credit for paying the dividend
credit is there so the same money isn't taxed twice
to bad the government wouldn't reverse their decision to increase the inclusion rate it was set at 50% because it was in most causes it is taxing inflation not a windfall