The exchange of shares of EcoSynthetix (Michigan) with the newly publicly listed EcoSynthetix (Ontario) results in a disposition of the EcoSynthetix (Michigan) shares for Canadian tax purposes. Accordingly, an EcoSynthetix (Michigan) shareholder may realize a gain (or loss) and be subject to Canadian tax. This treatment includes those EcoSynthetix (Michigan) shareholders that exchanged their EcoSynthetix (Michigan) shares exclusively for EcoSynthetix (Ontario) shares and those that may receive a combination of EcoSynthetix (Ontario) shares and cash. It is possible for such an EcoSynthetix (Michigan) shareholder that is subject to Canadian income tax to defer some or all of the gain and Canadian tax resulting from the disposition by making joint tax election(s) with EcoSynthetix (Ontario) under section 85 of the Income Tax Act (Canada). Such tax election(s) must be then filed with the Canada Revenue Agency, and any applicable provincial taxation authorities, in the prescribed form and within the prescribed time. These joint tax election(s) are optional. An EcoSynthetix (Michigan) shareholder that is subject to Canadian income tax that does not make the joint tax election(s) with EcoSynthetix (Ontario) will not obtain a tax-deferred rollover on any gain realized on the disposition of their EcoSynthetix (Michigan) shares and may be subject to Canadian income tax.
Any EcoSynthetix (Michigan) shareholder subject to Canadian income tax that would like to make a tax election must provide their name, mailing address and telephone number via voicemail on the EcoSynthetix technical assistance hotline at 1-855-828-7733 or via email at eco.tax.election@ca.pwc.com. EcoSynthetix (Ontario)’s representatives will contact all eligible EcoSynthetix (Michigan) shareholders with instructions on how to make the tax election.
The following EcoSynthetix (Michigan) shareholders should NOT file a tax election:
- “Retaining Holders” that continued to hold an interest in EcoSynthetix (Michigan).
- Shareholders that are non-residents of Canada that are not required to file a tax return. Uncertain taxpayers should contact their accountants or tax representatives.
- Shareholders that held all of their EcoSynthetix (Michigan) shares in an RRSP, RRIF, TFSA, or other Canadian tax-exempt plan.
- Shareholders that realized a loss on the disposition of their EcoSynthetix (Michigan) shares.