In the US there are strict tax rules around the selling of a security in order to take advantage of a loss and to offset gains made in another transaction.
It's called the Wash Sale rule and basically says that if you sell a security at a loss to take the tax loss and then buy the same security within 30 days, The IRS will disallow the loss and the difference will be added to the basis of the stock you bought so eventually the IRS gets its money.
Further, if they suspect and can prove that you did this deliberately with the intention to avoid paying taxes, they can put your A$$ in jail.
Is there a similar law in Canada? I'm sure there must be. If so, how could these guys be engineering these sales and immediate buy backs?
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