NEWS WATCH
After the third day of public hearings by the Standing Committee on Finance, the Liberal Opposition announced a plan that involves a repeal of the 31.5 per cent tax on income tax distributions in 2011. The Finance Critic for the Liberals, John McCallum proposed that it be immediately replaced by a 10% that will be paid by the companies and would be refundable to Canadian residents. Furthermore, the Liberals are proposing that the tax revenue be shared equitably with provincial governments.
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.