Hey Red,

This is all good...typically when shareholders receive a special dividend, that is deemed "Return of Capital" the tax laws obligate them to adjust downward the cost base of the shares that they are holding. The consequence is that upon selling these shares the capital gain is greater and thus the taxation is realized by REV Can.

In this case KWG has received the advance ruling that deems this special dividend as a "Return of Capital" and as the release points out, the numbers will most likely play out in such a way that the fair value of the distributed shares, does not exceed the adjusted cost of the KWG shares owned by the individual, and as such it is deemed that no capital gain has been realized..."To the extent that the fair market value of the DDI shares received by a particular Shareholder exceeds the adjusted cost base of the KWG common shares to such Shareholder, the Shareholder will be considered to have realized a capital gain

"Any tax expert?...please comment or correct my interpretation...I am definitely not a tax expert...

Cheers and good luck to all KWG and DDI longs,

LP