NEWS WATCH
During the second day of Finance Committee public hearings on income trust tax “losses”, two analysts questioned the methodology and assumptions used by the Minister of Finance and his Department to calculate there is a loss of corporate taxes due to the existence of income trust securities. Confronted with new low estimates, Finance Department personnel attempted to articulate the method to their findings. And ultimately, the contradicted the authoritative presentation of that method shown two days earlier by Finance Minister Jim Flaherty. Unfortunately, the Minister was supposed to be using information provided by the same staff who contracted him.
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.