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Thread: Distribution of revenues ?Capital gains or dividends ?Or ?

  1. #1
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    Distribution of revenues ?Capital gains or dividends ?Or ?

    Hello all

    Success in business comes along with a proper distribution of revenues and having the best income tax rates as permitted by law ?




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    Booker

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    That sounds more like a statement than a question Booker !
    " You actually get to choose your friends, family.........well..."

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    Well I guess it can be ?
    But in this case more of a question?

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    Booker

  4. #4
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    Quote Originally Posted by Doggyluver View Post
    That sounds more like a statement than a question Booker !
    Hello Doggyluver

    You are very familiar with dividends being in the stock market !Would you be familiar with the expression "pumping the profits "?




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  5. #5
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    No but I am familiar with another that sounds like that "Pump and dump" This is when a firm pumps up a stock to sell to their clients in an effort to push the market higher and then sells off all of the position they bought in an effort to secure the profit they made for those clients, this practice is actually illegal and in the day and age where our markets are tracked via computer easy to track.
    " You actually get to choose your friends, family.........well..."

  6. #6
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    Quote Originally Posted by Doggyluver View Post
    No but I am familiar with another that sounds like that "Pump and dump" This is when a firm pumps up a stock to sell to their clients in an effort to push the market higher and then sells off all of the position they bought in an effort to secure the profit they made for those clients, this practice is actually illegal and in the day and age where our markets are tracked via computer easy to track.
    Hello Doggyluver

    Yes I know "Pump and Dump"
    Which is not "Pumping the Profit" that one being completely legal contrary to the first one .
    However certain criterias must be met so it's approved by CRA .

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    Booker

  7. #7
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    Quote Originally Posted by BookerL View Post
    Hello Doggyluver

    Yes I know "Pump and Dump"
    Which is not "Pumping the Profit" that one being completely legal contrary to the first one .
    However certain criterias must be met so it's approved by CRA .

    Cheers

    Booker
    When purchasing a stock listed on the exchange there can be no "pumping any profits" as all listed companies must submit audited financial statements. Certainly this is in part to protect potential investors from purchasing stock in a company that has falsely declared it's profitability. Private companies have been know to do this when trying to convince a bank to advance them a loan in order to expand or run their business. Private companies have also made a stock offering on a private basis to friends and family in order to raise capital. I would however advise anyone looking to invest in a private company to tried carefully and consider the money invested as lost. If it works out great, if not, never lose a friend over an investment you made in their company. If this is retirement money, make sure you are investing in viable companies with good growth potential and that pay a regular increasing dividend. There have been scams where investments in private companies have been promoted by Chartered accountants to allow an individual to withdraw a portion of monies tied up in a locked in retirement plan. CRA came back years later and disallowed the withdrawals and forced many individuals into bankruptcy as a result of taxes owed on those withdrawals so even the advice of an accountant needs to be questioned sometimes. General rule of thumb, "If it sounds too good to be true, it probably is "
    " You actually get to choose your friends, family.........well..."

  8. #8
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    Quote Originally Posted by Doggyluver View Post
    CRA came back years later and disallowed the withdrawals and forced many individuals into bankruptcy as a result of taxes owed on those withdrawals so even the advice of an accountant needs to be questioned sometimes. General rule of thumb, "If it sounds too good to be true, it probably is "
    I do agree advice of chartered accounted should be questioned .
    I always questions high caliber litigant tax lawyers before making a move ,luckily in Montreal there is many competent litigants .
    Major Canadian Corporation are using The Pumping the profit strategy since it is legal and approved by CRA and its Quebec equivalent .




    Cheers




    Booker

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