I also believe that the distribution has no impact on our KWG shares ACB, but rather on the shares' Paid-up Capital. The effect of the operation would only be seen if KWG shares are 'bought back' to the Treasury (instead of sold on the market), then it would trigger a deemed dividend which would be increased by an amount equal to the paid-up capital reduction value of our KWG shares resulting from the DDI distribution.

Meaning that, in Wishing example, $3000 of the proceeds from a buy-back transaction of our KWG shares would be taxed as a (deemed) dividend instead of a capital gain. So, when the time has come, take care of selling your KWG shares trough a market share transfer and not to KWG itself out of a share buy-back transaction!

I also can stand corrected on all these tax wizardries! (Is there an accountant in the room?)

GLTA.

BaBe.

(ACB: adjusted cost base)