CMKM Diamonds Inc (fka CMKX)

[TSXminer]

Also Gump, shares "given" to another party are deemed income in the hands of that party based on the share price at the date of the transaction. Therefore, if say 1 billion shares are "gifted" (same as exercising a stock option) to Joe Blow, and the stock is trading at .0004, then the fair market value is $400,000. If the shares fall to .0001, and Joe Blow sells, he receives $100,000. Unfortunately, he is also on the hook for income tax on the original $400,000, which is more of a liability that the $100,000 he received for the stock.

The question is: who will catch up to Urban first - the SEC or Revenue Canada (or the IRS)?