IMO

SCENARIO 1) $1,000,000 Paid to shareholder with 10,000 shares of SLI HELD IN A TAXABLE ACCOUNT. Initial investment 10,000 shares bought at price of $1 = $10,000 initial investment. $990,000 capital gain x approx 25%=$247,500 tax payable.

TFSA, $1,000,000 Paid to shareholder with 10,000 shares, tax payable= $0

RRSP, $1,000,000 Paid to shareholder with 10,000 shares, tax payable up til its taken out = $0, when taken out of RRSP account, taxed at current year tax bracket, ie: 30%= $300,000 tax payable, (note; you should add inflation in here if the money is gonna stay in this account for a long period of time, your money may not have as much buying power then, and you will have to draw more out, putting you in a higher tax bracket of maybe 40%. Also dont forget the implications this may have on any government pensions, if you plan to be drawing from these accounts at age 60 or up.)

SCENARIO 2) $1,000,000 Paid to SLI shareholder with holdings in a Taxable account. If all reinvested within 6 months, $0 tax. If $100,000 spending money kept out, then $100,000- initial investment of $10,000= 90,000 x 25%= $22,500 tax.

If all $900,000 comes out in 5 years, but your $900,000 has turned into $1,800,000, you should pay $0 tax if you reinvest within 6 months OR pay 25% on the capital gain of THE WHOLE $900,000 = $225,000 if you spend it.

Keep in mind the baby boom and many who are gonna retire at once. The government knows that if all these baby boomers draw their government pensions at once, they got a problem. They would rather us have enough cash that we dont need these pensions, so their best course of action is to help the most capable of becoming self sustained in the retirement years. Thats the real reason why the RRSP,S were designed, to eventually rule out government pensions for many so that there would be money for the people that most needed these pensions to survive. IMO

If you have other stocks, you would be better off selling your initial investments in these first, providing they did not have gains to match SLI.

For ex: $100,000 worth A stock, Paid $90,000 initial investment. Sell all $100,000 A stock - $90,000 initial investment= $10,000 capital gain x 25% = $2500 tax payable.

Keep in mind, like Hilljilly said, its hard to beat the tax man. And at some point in time you will pay taxes on all these scenario,s except the TFSA.