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Tax Re-Filing - General Update - May 2003
ROUND ONE - Return of Capital only
The majority of the initial phase of tax re-filing was completed by CCRA in the spring/summer of 2001. Their figures indicate over 2,100 refund cheques were mailed to investors. These refunds were based on the re-filing of Eron interest as a Return of Capital.
ROUND TWO - Losses
We have now completed the mailings for the second phase of the re-filing process. Over October 2001 - July 2002, we mailed each eligible investor, a package of election forms and information containing:
Summary of non-registered investments eligible for the re-filing process
Summary of elections made to date
Additional interest amounts eligible for Return of Capital treatment
Capital Loss calculation and application forms as deemed by CCRA
ABIL calculation and application forms as deemed by CCRA
Individual discrepancies raised in initial round mailing explained
General information
If your investment is registered (RRSP), you are not eligible for this re-filing process.
If your investment is in ABC Boat Charters, Castlegar, Discovery Ridge, Homer Street, Leewood Village, Petrochemical, Ravenswood, Shopkeepers or Wang Building, you did not receive a loss election form for your investment. The return on these projects is close to, if not over, 100 cents on the dollar, and there may be no loss incurred. If there is a loss on these projects, it will be dealt with near the end of the Judicial Trusteeship.
If you did not receive your package, please contact Patty Cotton, at (604) 806-7780 ext 4146, and request a duplicate package.
If the deadline date on your mailing has passed, and you did not submit your election forms in time, we advise that it's not too late to take part in the process. We are still accepting `late' submissions.
CURRENT PROCESSING
Our current task is to compile and check all responses received, and submit them to CCRA for processing. To date, we have made 10 submissions of lender's losses to CCRA, representing $39,639,917.00 in allowable losses. Correctly completed forms for 1,099 lenders have been sent to CCRA on the following dates:
Submission # 1 - December 18, 2001 - 113 lenders
Submission # 2 - January 23, 2002 - 55 lenders
Submission # 3 - March 28, 2002 - 116 lenders
Submission # 4 - August 2, 2002 - 122 lenders
Submission # 5 - September 13, 2002 - 100 lenders
Submission # 6 - October 3, 2002 - 106 lenders
Submission # 7 - November 6, 2002 - 177 lenders
Submission # 8 - December 16, 2002 - 150 lenders
Submission # 9 - February 13, 2003 - 106 lenders
Submission # 10 - April 17, 2003 - 54 lenders
Our next submission will be sent to CCRA during May 2003. We have 60 incomplete or incorrect responses left to submit to CCRA. These will be addressed directly with the taxpayers involved over the next several weeks.
REFUNDS
In ADDITION to the refunds generated from the initial Return of Capital process, CCRA has started to process refunds based on the submitted losses. Between August 2002 and April 17, 2003, 919 investors, representing 2,075 re-assessments were issued refunds. Some lenders will be receiving multiple re-assessments if they are having more than the 1997 tax year re-assessed.
Generally, CCRA is processing the re-assessments in the order they were received from us. They are currently processing requests from submissions 8 & 9. We will update these figures and any other information as the process continues.
PricewaterhouseCoopers Inc.
Judicial Trustee
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