Been T

As I have indicated elsewhere, PRB accountants/tax lawyers should be well-versed with CRA rule so I would leave that stuff to them. For ordinary investors (non-experts) all they need to know would be "is PRB allowed to use the $26M from the PP to purchase the claims from the lumber people, including the 50-50 JV and the wedge, plus surround claims?"

I notes the exclusion: " SPECIFICALLY EXCLUDE acquisition of depreciable lands (whether you own them or not)", but just wondering if this is meant for the claims under discussion. The reference in quotes says "depreciable lands". There are two things one would like to know.

- "lands": does this mean land claims?

- "depreciable": So this is excluded, but does it mean acquisition of "appreciable" lands would be permitted? It would be good to have legal definitions of these terms in black and white in the rule book, or they may be challenged in court.

I understand that tax rules are complex, but the language would have to be as clear as possible to avoid mis-interpretation. (Note: the tax department is trying to explain the complex (income-tax) rules by giving examples in the tax guides. Are they doing the same thing for the flow through shares, particularly the acquisition of lands/claims?).

Tax lawyers are good with their interpretation (to stay within the rules of course). But quite often, they would get a pre-clearance from CRA to be perfectly safe.

During the meantime, ordinary investors are left guessing.

goldhunter