The Canada Revenue Agency is after me - Part 2

Today was my day off, as a colleague of mine desperately need its Saturday off. Since I am not currently working at my weekend job, I decided to give a hand. So today, I had time to write everything I felt about Canada Revenue Agency. I have to say, despite my very hard feeling, our agency is doing one of those good job... let me explain.

2009 had been a very good year financially speaking. I had made over 40k in salary, I had earn thousands of dollars in dividend income. Yeah 2009 was an awesome year. But it was the first year I had massively invested in stock and income trust funds, the same one that had been converted in corporation just in time for 2011. And there was from where I got problem from. From the income trust funds. TD Waterhouse is very great to use because if you registered to their eService, they won't ever send you tax papers over the mail. So this mean that you have personally have to print them.

Myself as an individual, I am always in a ruch, working at several jobs, etc etc etc. But myself as an individual, I might have forget to print one of the form, because when I visit my accountant just an hour ago, I was told that the form that Canada Revenue Agency refer to in their letter, well, that form was not from my tax declaration. Not at all.

So the mistake was all mine and I am taking the whole responsability and yes, despite the governement people having access to free French courses, yes, I will be paying that $168 and something cent I own Canada Revenue Agency.

The Canada Revenue Agency is after me

Just when things are going so well, something have to happen. This time, the something is coming directly from Canada Revenue Agency. When I open the envelop, I freak out: I own the Canada Revenue Agency 165.88$. Reason behind: there is an extra payment that need to be made for my taxes. Those federal government jerks have really nothing better to do than reviewing my tax declaration of 2009 almost one year after it's been done and completed. Brian Mulroney can be out in the world when he had steeled million of dollars from federal taxes money but I, small investor is being ripped off! Totally being ripped off. Those people working at federal agencies shouldn't be getting any benefit or pension privilege because myself, I don't get any of those privileges but on top of that, those government idiots are sucking me to dead. I am the one who work hard for my money, I am the one who invest and create financial health with MY OWN MONEY. I am not a money sucker. I am not a cheater like Brian Mulroney.

Ok, so now, you will ask yourself, what's going on? In 2009, the total income that I declared was of 40 916$. Quite some money! But the people of the Canada Revenue Agency had revised my 2009 declaration and had decided that my total income was not of 40 916$, but of 42 195$. We are talking here of a difference of 1 279$!

According to Canada Revenue Agency, the money is coming from my dividend income received from Bell Aliant, Livingston, Energy Savings, Yellow Pages, Pembina, Enbridge Income Fund and Pengrowth. That's what they say in the letter without commenting more.

In 2009, I had gave to the accountant who did my tax declaration all of the papers received from TD Waterhouse. My tax declaration had been done correctly the first time. It's just those Ottawa morons who are messing up with my taxes. On top of that, the little jerks had charged me an interest of 5.43$ on the amount due!!!! MORONS!

I am going to write to those jerks of Canada Revenue Agency that I don't own them any money because I had declared the dividend that were on my T5 form. The jerks should had access to the information, since the T5 directly come from the Canada Revenue Agency itself!!!

I worked in Ottawa previously before and I know how selfish the federal government employees are. They don't give a damn about anything. They only care about their salaries and pension benefit. In Ottawa, a lot of are federal agents are taking free French courses. They had all of their life to learn French, they never care about the French language. Where the money is coming from to finance those French courses? FROM MY TAXES.

This is the way Canada is for French Canadians. Enough of the bullshit. I had pay my taxes in April 2010, the little idiots of Canada Revenue Agency.

If, like me, you had received such letter, you have the right to contest. The jerks even provide ways you can contest their decision... Yah.

Conversion now completed for JE.UN, BA.UN, PGF.UN, ENF.UN, DHF.UN and CWI.UN

I use to be an income trusts lover for the awesome dividend they were provided me every single month of the year. With the new legislation regarding taxable Canadian corporation, income trust companies had until 2011 to convert into corporation. Because I hold many income trust companies in my portfolio, lately, a lot of changes happen recently. A lot of changes, but it's always the same good companies. In my portfolio, I hold Just Energy Income Fund (JE.UN), Bell Aliant Regional Communications Income Fund (BA.UN), Pengrowth Energy Trust (PGF.UN), Enbridge Income Fund (ENF.UN), Davis + Henderson Income Fund (DHF.UN) and the The Consumers' Waterheater Income Fund (CWI.UN). Let's see the changes that occur now for those companies:

Just Energy Income Fund (JE.UN) conversion into Just Energy Group Inc. (JE)

I begin this post with Just Energy Income Fund (JE.UN) because JE.UN is my favorite stock! I like everything related to Just Energy, I like the story of their CEO Rebecca MacDonald, their newest US acquisitions and, more importantly, Just Energy Income Fund (JE.UN) awesome dividend. I am a huge Just Energy fan and I am very proud to be one of their unitholders! As a unitholder, Just Energy Income Fund (JE.UN) never failed at meeting my expectations. Since I began to invest in Just Energy, the company had paid me year after year a special dividend of 20 cents per unit.

Like other income trusts, Just Energy Income Fund (JE.UN) paid a dividend income on a monthly basis. Just Energy Income Fund dividend is of 1.24$ annually. To this you can add what is now commonly usual, the annual special dividend of 20 cents per unit. That make an awesome 1.44$!!!!

Just Energy Income Fund (JE.UN) is not Just Energy Income Fund (JE.UN) anymore. But that's only to get better. Just Energy Income Fund (JE.UN) is now Just Energy Group Inc. and its trade ticket is JE. Good news for stockholder: the dividend of Just Energy Group Inc. (JE) will remain exactly the same!

No news regarding the special dividend yet, but please, one thing at a time! lol...

Bell Aliant Regional Communications Income Fund (BA.UN) conversion into Bell Aliant Inc. (BA)

I am coming from New Brunswick and I am always very happy to be able to hold stocks from "back home" if I can say. In Maritimes provinces, Bell Aliant is huge. No one outside New Brunswick can have a taste of what's Bell Aliant represent for New Brunswickers.

Before its conversion, Bell Aliant Regional Communications Income Fund (BA.UN) was generous enough to pay its investors a dividend of close to 3$ per unit (2.90$ exactly annually per unit). So yeah, that's a lot of cash!

Bell Aliant Regional Communications Income Fund (BA.UN) conversion into a corporation is affecting the company in many different ways. In result, Bell Aliant had decided to cut its dividend. But when dealing with companies who are paying a huge dividend like close to 3$ per unit, you need to be ready for dividend cut one day or the other. That's my own opinion. I live a similar experience with Pengrowth Energy Trust (PGF.UN) before, but we will get back to it.

Anyhow, Bell Aliant Inc. (BA) dividend is quite still generous and it's still interesting to hold Bell Aliant Inc. (BA). Even after conversion, Bell Aliant dividend is quite strong and way much better than what BMO Bank of Montreal (BMO) can offer to their investors.

Bell Aliant Inc. (BA) new dividend is going to be of 7.3% per cent. That 7.3% is based on the closing price of Bell Aliant Regional Communications Income Fund (BA.UN) on date of December 31, 2010. Bell Aliant Inc. (BA) is going to be of 1.90$ annually. The dividend will be paid quarterly, which mean that Bell Aliant Inc. (BA) will no longer be paying a monthly dividend. Bell Aliant Inc. (BA) dividend will be of $0.475 per share quarterly. Quite interesting, don't you think so?

Pengrowth Energy Trust (PGF.UN) conversion into Pengrowth Energy Corporation (PGF)

Ahhhhhhhh Pengrowth Energy Trust (PGF.UN)! If Just Energy is my number one stock pick, Pengrowth Energy Trust (PGF.UN) arrived on second place. I "just" love Pengrowth Energy Trust (PGF.UN) and I have a longtime trade story with them.

Back in 2008, I had purchased my first units of Pengrowth Energy Trust (PGF.UN) following the discovery of Derek Foster. The Stop Working strategy? It's seemed unreal to me and I wasn't really interested in reading Derek Foster book at first. But time pass, I was getting no where with my mutual fund investments and while reading Derek Foster posts on the Canadian Business forum, I told myself: Why not? 

That's was the beginning of quite of a journey for me in the stock market. In now almost 3 years of trading, I could say I almost saw it all: the 2008 stock crash, the quick up and downs. I made money, lost money.  The stock market is not the same anymore and so I am. But overall, I did quite well, but the reason behind my trading success in the stock market was Derek Foster, that we discuss quite a bit in the past couple of years together readers, but things needed to be say.

Believe it or not, I was holding Pengrowth Energy Trust (PGF.UN) units when its dividend was of an awesome 2.70$ per unit! Those were wonderful time for me. The dividend of Pengrowth Energy Trust (PGF.UN) was so huge! That was back in the year of 2008.

In November 2008, Pengrowth Energy Trust (PGF.UN) announced its first dividend cut from a monthly amount of $0.225 to $0.17. Nothing major, I continue to hold the units. That dividend cut wasn't drastic. At $0.17 a month per unit, I was still enjoying a great dividend. Since I like the company and it was a Derek Foster stock, I decided to stick and hold, what I do the best.

But things were going to get more difficult for Pengrowth Energy Trust (PGF.UN) during the recession. 2008 was just the beginning of the years of capitalist destruction. But overall, the recession, I benefit from it. I build my stock portfolio, I get those debt to use for leverage, got laid off from BMO Bank of Montreal for no valuable reason but what no one was going to know but know certainly now: I was going to make money like crazy in a recession world. Ok, well like "crazy" I guess its depend of your criteria of success, but 4 000$ in dividend earning + a close to 8 000$ increase value of my investment for 2010 is what I call crazy money... Crazy money for a crazy girl lol...

My story with Pengrowth Energy Trust (PGF.UN) do not end here. In September 2009, Pengrowth Energy Trust (PGF.UN) reduced its dividend for the second time. That time, the dividend was reduced to 7 cents per unit. That's when I decided to sell all of the units I was holding of Pengrowth Energy Trust (PGF.UN) to invest the vast majority of the money in Pembina Pipeline Corporation (PPL). And gees, that was so an incredible good move coming from my part!

Later on, while searching something cheap to invest in, I decided to invest again in Pengrowth Energy Trust (PGF.UN). I currently hold just a bit more than 200 units of Pengrowth Energy Trust (PGF.UN). Me and Pengrowth Energy Trust (PGF.UN), its a love story set for life. Pengrowth Energy Trust (PGF.UN) were the first stock I was selling on the stock market. My very first sell. WOW.

And now today in 2011, Pengrowth Energy Trust (PGF.UN) converted into a corporation. Pengrowth Energy Trust (PGF.UN) new name is Pengrowth Energy Corporation. The new symbol ticket is PGF. The dividend of Pengrowth Energy Corporation (PGF) remains the same, $0.07 per stock. And good news for investors: Pengrowth Energy Corporation (PGF) will continue to pay a monthly dividend just like before! YEAHHHH!

Enbridge Income Fund (ENF.UN) conversion into Enbridge Income Fund Holdings Inc. (EIFH)

Enbridge Income Fund (ENF.UN) is another Derek Foster stock. I was bright enough to purchase 300 units when their price was around 13$ only... Now, at more than 18$ per stock, Enbridge Income Fund is fabulous. And I own it to who? To myself, of course because I am the one who decided to invest in Enbridge on the first place lol.

Enbridge Income Fund (ENF.UN) new name following its conversion is now Enbridge Income Fund Holdings Inc. (EIFH). Guess I will have to get use to the new trading symbol.

The dividend for the new Enbridge Income Fund Holdings Inc. (EIFH) will remain the same as it is now, 1.152$ per unit. The only change is in the payout of those dividend. Enbridge Income Fund Holdings Inc. (EIFH) plans to pay its dividend on a quarterly basis.

Davis + Henderson Income Fund (DHF.UN) conversion into Davis + Henderson Corporation (DH)

Things are going pretty well for Davis + Henderson Income Fund (DHF.UN). What catch my attention at first in this company is the + symbol between Davis and Henderson, that I always found quite mysterious, no matter how bizarre it can sound. Like why Davis + Henderson and not simply Davis and Henderson? No matter what catch my attention, this is good stuff because I made a profit of 320.84$ this year on Davis + Henderson Income Fund (DHF.UN). Yeah! And the dividend was also very great.

Ok, so regarding the name, nothing to worry about, the magical + remains were it belong! Davis + Henderson Income Fund (DHF.UN) had now become Davis + Henderson Corporation (DH).

Davis + Henderson Corporation (DH) is going to pay a quarterly dividend of $0.30 cents per unit or, if you prefer, an annual $1.20 dividend per stock. Still great stuff, despite the dividend cut. Before Davis + Henderson Corporation (DH), Davis + Henderson Income Fund (DHF.UN) dividend was of an extraordinary $1.8396.

The Consumers' Waterheater Income Fund (CWI.UN) conversion into EnerCare Inc. (ECI)

We had talked of the future of The Consumers' Waterheater Income Fund (CWI.UN) previously before. The Consumers' Waterheater Income Fund is another Derek Foster pick that I decided to add to my portfolio. After Derek Foster announced that he had sold his units, The Consumers' Waterheater Income Fund (CWI.UN) has some hard time in the sense that the value of its units was somewhere around 5$.

In the last quarter of 2010, The Consumers' Waterheater Income Fund (CWI.UN) had done extremely well. As a stick and hold investor, I didn't sell my The Consumers' Waterheater Income Fund units when I found out that Derek Foster sold his. I am grateful for taking the decision of not selling. I hate to sell my investment. Whenever I sell, there's a good reason behind.

I had confident in The Consumers' Waterheater Income Fund. I like the company and I always remember what Jean-François Tardif had said about The Consumers' Waterheater Income Fund, that it was a really safe company to invest in or something of that nature.

However, I still hold The Consumers' Waterheater Income Fund (CWI.UN) in my portfolio. All of the units I hold from CWI.UN are inside my TFSA. 

The now EnerCare Inc. (ECI) will maintain the same dividend amount as for the late The Consumers' Waterheater Income Fund (CWI.UN): $0.648 per share annually or, if you prefer, $0.054 monthly per stock. And yes, EnerCare Inc. (ECI) will maintain a monthly dividend! Bravo to EnerCare Inc. (ECI)!

Conclusion

2011 marks the end of my success story with income fund. Conversion had been done quite smoothly for those companies. But I just can't imagine what kind of work all of those changes might had represent in term of work for all of those companies.

JE.UN, BA.UN, PGF.UN, ENF.UN, DHF.UN and CWI.UN no longer exist, but the same companies will continue to operate a different name and symbol ticket. A dividend cut is being experiment in some cases, but some very strong companies like Enbridge Income Fund Holdings Inc. (EIFH) and Just Energy Group Inc. (JE) just to name those 2, had been able to maintain their dividends at the same level.

The conversion of Pembina Pipeline Corporation (PPL), Yellow Media Inc. (YLO) and Premium Brands Holdings Corporation (PBH) had been done during the year of 2010. Personally, I only hold Premium Brands Holdings Corporation (PBH) since its become a corporation. Premium Brands Holdings Corporation (PBH) is a Jean-François Tardif stock pick, which well for me at this time, despite that I previously taught about selling Premium Brands Holdings Corporation (PBH). But I won't be selling Premium Brands Holdings Corporation (PBH) anytime soon. Unless an emergency need of cash emerge.

Happy 2011 investment party! Can't believe we are here. Are you ready for 2011?