NEWS WATCH
Investors and market participants opine on the nature of a possible leak of policy information at the point “no new taxes” was confirmed as the policy for income trusts in November 2005. Anger is being seen on all sides. Meanwhile, professional tax advisors are reinforcing for their clients that there might be an on-going concern about the underlying policy decision. Despite all the pain and feelings about it, the Tax policy threat may not yet be fully dead.
iTrust Institute is studying the key features, perceived potential & benefits of income trusts starting from the premise that:
Equities managed and structured like income trusts to flow net gains through to owners by way of frequent and regular distributions of cash can offer superior rates of overall return, support market growth, enhance economic productivity and contribute to growth of the tax base with less risk than other equities given honest managers and a fully competitive market supported by open communications.
We will test this notion and explore related questions.