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Frequently Asked Questions
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| Kavilco strives to keep communication clear and consistent with our shareholders. If you have additional questions that are not featured here, please click on the following links to find additional information. Bureau of Indian Affairs SCHOLARSHIP INFORMATION:
When is the next distribution scheduled? How much is it? |
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WHEN IS THE NEXT DISTRIBUTION? HOW MUCH IS IT? |
| HOW MUCH IS KAVILCO STOCK WORTH? CAN I SELL MY STOCK? Kavilco Incorporated is an Alaska Native corporation governed by the rules and regulations of the Alaska Native Claims Settlement Act. According to the Act, these shares may not be sold, assigned, hypothecated or transferred (except through gifting, death, or court order). There is no par value assigned to the stock, it is not publicly traded and therefore has no market value. |
| ARE MY DIVIDENDS EXEMPT FROM FEDERAL LIENS? A policy change at the Internal Revenue Service, June 1, 2005 could mean that Alaska Native shareholder dividends are no longer exempt from Federal tax liens. For 20-plus years, the IRS honored a moratorium on imposing tax levies on the dividends of Alaska Native corporations and who owed government taxes. The moratorium was intended to allow roughly 200 Native corporations, created as part of a land claims settlement, time to develop financial stability. With the tax levy, the IRS could begin to attach liens to shareholders’ dividends for past due Federal income tax. However, the agency has not started enforcing the new policy in an effort to give shareholders time to be notified. Source: Native American Law Report, June 2005. |
| WHO ARE CLASS A AND CLASS B SHAREHOLDERS? Class A (voting shares) can only be issued to a person who is an Alaska Native or a descendent of an Alaska Native. Nonvoting Class B shares are issued to non-Native persons who inherit stock. |
| WHAT IS SECTION 7 (i)? Section 7 (i) is a provision of the Alaska Native Claims Settlement Act, which states that each of the 12 regional corporations in Alaska must share with the others 70 percent of its income from developing its natural resources. Annually, these revenues are pooled together and then are apportioned back to the regional corporations on a per capita basis. Kavilco shareholders have received all Section 7 (i) distributions in the form of a Kavilco dividend. |
| TO WHOM MAY I GIFT MY SHARES? You may gift any number of your shares to a child, grandchild, great grandchild, niece or nephew, brother or sister. |
| WHO MAY I NAME ON MY TESTAMENTARY DISPOSITION? The Testamentary Disposition is a form that indicates who will receive your shares upon your death. You may leave your shares to any person or any entity when you die. Kavilco encourages you to keep your testamentary disposition current. |
| WHAT PROTECTIONS AND RIGHTS DO THE "1991 AMENDMENTS" PROVIDE? The “1991 Amendments” to ANCSA became law on February 3, 1988. They provide several critical protections for Native corporations. LAND PROTECTIONS: Land cannot be taxed unless or until developed, cannot be taken through adverse possession or by creditors unless mortgaged, cannot be lost through bankruptcy, and cannot be lost if the corporation is voluntarily dissolved. However, in the Investment Company Act of 1940, under the liquidation provision, all assets, including the land must be sold. STOCK RESTRICTIONS: Corporation stock cannot be sold, pledged as collateral, traded or taken away to pay a debt (except through gifting, death or court order). STOCK OPTIONS/BENEFITS (by shareholder vote): If shareholders approve, stock can be issued to shareholder descendants or elders. ANCSA corporations can create an Elders Settlement Trust. New shares can be issued in a number of varieties, including voting/non-voting, preferred stock, life estate stock and others. To date, Kavilco shareholders have not authorized the issuance of any new stock. OTHER ISSUES: Welfare eligibility in Alaska is not affected by dividends unless the amount of dividends exceeds $2,000 in one year. Native corporations qualify as minority businesses and are allowed to give preference to shareholders when hiring. |
| WHO CAN I CONTACT FOR A BUSINESS LOAN OR TECHNICAL ASSISTANCE TO START MY OWN BUSINESS? Kavilco does not offer business development loans or technical assistance. For loan information contact the following organizations: Branch of Financial Assistance Business and Economic Development Section |
| DOES KAVILCO OFFER MEDICAL ASSISTANCE? No. There are Indian Health Services facilities or contracted facilities in many areas where shareholders may receive health services. See Health & Social Services for more information. |
| DOES KAVILCO ASSIST WITH FUNERAL EXPENSES? No. However, the Bureau of Indian Affairs and other organizations offer some benefits. See Funeral & Burial Assistance for more information. |