investment loss - not claimed in year occurring Canada

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QUESTION:
I invested money with a group of other investors..the advisor turned out to be non-licensed .. the Courts became involved and  ordered all the assets managed by the advisor be turned over to a Receiver for distribution .. the Courts agreed to an  offer of 80 cents on the dollar be returned to the investors ... how is the 20 cent per dollar difference dealt with ... this was also in a prior taxation year (2001) Thanks ...
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david ingram replies:
If this was the ERON setup, the directions were sent out very clearly.  If you do not have them, Get hold of George Hatton, CA at our West Vancouver office at (604) 980-0321.  George has done a couple of the ERON settlements.  Because it is already two years old, please wait until May.
If it was not ERON, you need to look at the paperwork.  Some contracts in these cases state that monies paid are to be credited to interest first and principal second.  If this is the case, you could find yourself taxable on the 20% on the dollar you received because it is treated as interest and the principal becomes a capital loss which can only be used against a capital gain.
In either case, there "will" be a capital loss and your 2001 tax return needs to be amended to take the loss and possible interest payment into account.
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