Ian Dale, a spokesperson said to news media that, “The CPPIB was concerned that companies might be choosing corporate structures motivated primarily by tax considerations. There were a variety of possible public policy solutions in dealing with the tax arbitrage issue. We think that the resolution of the corporate structure tax arbitrage issue is a welcome result......We think that the decision by the government to create a level playing field, in terms of corporate structures, and in terms of a level playing field for investors, is a suitable outcome.

CPPIB is Canada’s second-largest pension fund with a mandate to make long-term investments. It manages nearly $100 billion in assets including public equities and trusts. More recently, the pension fund manager announced that it would be looking to spin off a REIT, one form of flow-through entity not touched by the proposed new taxes.  The CPPIB also said that it would begin to invest Canadian pension funds in private equity and overseas investments.

Some would say this is a sign of the times for Canadian markets under the Flaherty government tax “fairness” policy.