NEWS WATCH
The Canadian government has announced that it will establish a new tax “fairness” plan that promises to institute new taxes on distributions to unit holders from publicly traded income trust and limited partnerships. Unit holder values will be hurt as the commitment to new tax raises the bar for companies hoping to attract capital by delivering returns to investors.
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.