Your cash (non-RRSP) investments should qualify for an ABIL tax loss because the Plan of Arrangement was a documented "deemed sale" of your investment in a Canadian Small Business Corporation (Gallowai, Bul River, Zeus, Ft. Steele, etc.).  The information on this page provides the data to establish both the deemed sale (provide CRA the attached Gowlings letter), and the Small Business Corporation qualification.

To identify potential tax benefits that may be available to you or your business, (ABIL) Allowable Business Investment Lost or Capital Loss we recommend that you consult your tax advisor(s)  To assist your tax advisor(s), we suggest bringing the following documentation during your consultation:

  • Example/Questionnaire form outlining information the CRA will request in reviewing your Income Tax and Benefit Return. (CLICK HERE TO DOWNLOAD)
  • the Purcell Letter (Should be or will receive a letter via mail) (CLICK HERE TO DOWNLOAD)
  • the Blake's Letter (Should be or will receive a letter via mail) (CLICK HERE TO DOWNLOAD)
  • the Cheque itself (Should be or will receive a letter via mail)
  • the number of new Purcell shares you have received (Should be or will receive a letter via mail)
  • a record of your original Stanfield Investment

Other information that may be required by your tax advisor(s) may include:

1. Background

Purcell Basin Minerals Inc. acquired the Stanfield Mining Group of Companies within the CCAA (Companies' Creditors Arrangement Act)  

 

2. What is the CRA business # of the company I previously held shares in?

 

1

Big Bear Metal Mining Corporation

11932 5298 RC0001

Box 845, Cranbrook, BC, V1C 4J6

 

2

Bul River Mineral Corporation

10069 0270 RC0001

Box 845, Cranbrook, BC, V1C 4J6

 

3

Fort Steele Mineral Corporation

10185 3851 RC0001

 
 

4

Gallowai Metal Mining Corporation

10192 3720 RC0001

Box 845, Cranbrook, BC, V1C 4J6

 

5

Zeus Mineral Corporation

10579 0315 RC0001

 

 

3. How many employees do/did the company I held shares in employ?

Employees were generally hired under Bul River Mineral Corporation.

The number of employees varied widely depending on the activities at the mine site.  Today ,Bul River Mineral Corp. has 4 employees.  In February 2009, Bul River Mineral Corp. had 21 employees.  In June 2008, Bul River Mineral Corp. had 55 employees.

 

4. Operating Name(s)?

Gallowai Metal Mining Mining/Bul River Mineral Corporation (the operating companies) shared the operating costs equally. Fort Steele Mineral Corporation and Zeus Mineral Corporation were the parent companies of Gallowai and Bul River.

 

5. Where can I find a list of shareholders for the SMG/Purcell companies

You can download a list of shareholders. (CLICK HERE TO DOWNLOAD)

 

6. Did the corporation(s) declare bankrupcy?

No.

 

7. Did the corporation(s) cease operations? 

No.

 

8.  What business did the corporation(s) carry out?

Mining Activities.

 

9.  The ABIL claim relates to the "sale or deemed sale of a small business corporation".  What general information is required in this section of the questionnaire?

The date you acquired the shares:  (Varies by Individual)

The date you sold the shares: (December 9, 2014 - The close of the Plan of Arrangement in CCAA)

The cost of the shares: (The amount you paid for the shares)

The class and number of shares you sold: (Varies by individual - List all applicable)

The purchaser's name: (Purcell Basin Minerals Inc.)

The purchaser's relationship to you: (None)

Although not specifically requested, it may be beneficial to show the amount you received for the sale: (calculated as the value of Purcell Shares $10 x the number of Purcell shares you received.)

 

10. Other Resources

Canada Revenue Agency Links 

Lines 217 and 228 - What happens when you have an ABIL?

Line 252 - Non-capital losses of other years

 

 

 

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