Podcast
Questions and Answers
What is the primary reason for reporting the disposition of securities?
What is the primary reason for reporting the disposition of securities?
Which of the following is NOT an example of a security?
Which of the following is NOT an example of a security?
What happens when an individual signs a loan or credit agreement?
What happens when an individual signs a loan or credit agreement?
What is the potential consequence of failing to report the disposition of securities?
What is the potential consequence of failing to report the disposition of securities?
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Which Act defines a security as any document, instrument, or writing that constitutes evidence of title to or interest in the capital, assets, property, profits, earnings, or royalties of any person or company?
Which Act defines a security as any document, instrument, or writing that constitutes evidence of title to or interest in the capital, assets, property, profits, earnings, or royalties of any person or company?
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What is the primary characteristic of a security under the Ontario Securities Act?
What is the primary characteristic of a security under the Ontario Securities Act?
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Study Notes
Here is a summary of the text in detailed bullet points:
• The speaker is discussing the legal requirement to report the disposition of securities, highlighting its importance in reclaiming securities presumed abandoned.
• Securities include documents, instruments, or writings commonly known as securities, such as promissory notes, bonds, and bills of exchange.
• In Canada, the Income Tax Act and the Ontario Securities Act define securities and outline the legal requirements for reporting their disposition.
• The speaker emphasizes that securities are financial assets, and there is an obligation to report their transfer, as the government wants to know about all valuable transactions.
• Examples of securities include shares, debt obligations, bonds, and promissory notes, which are considered financial assets.
• The Ontario Securities Act defines a security as any document, instrument, or writing that constitutes evidence of title to or interest in the capital, assets, property, profits, earnings, or royalties of any person or company.
• The Securities Transfer Act in Ontario also defines a financial asset as a security, except as otherwise provided in certain sections.
• The speaker notes that when signing a loan or credit agreement, an individual is creating a security, which is a financial asset that must be reported.
• Failing to report the disposition of securities can lead to the recipient of the security receiving something for nothing, potentially resulting in a large tax liability.
• Reporting the disposition of securities is essential to establish ownership and prevent the recipient from claiming the security is worthless.
• The speaker suggests that individuals should report the disposition of securities to the tax department, providing facts and figures about the security, such as the date of the loan or credit agreement, and the type of security created.
• The speaker believes that reporting the disposition of securities can help individuals reclaim their securities and potentially reduce their tax liability.
• The speaker also notes that the government and tax authorities are not necessarily adversaries, but rather can be friends and allies if individuals do their duty and report the disposition of securities.
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Description
Learn about the legal requirements for reporting the disposition of securities, including financial assets such as shares, bonds, and promissory notes. Understand the importance of reporting to establish ownership and prevent tax liability.
