NEWS WATCH
Liberal Leader Stephane Dion has said that the changes to the tax system introduced by the Conservative government has threatened the competitive ability of Canadian businesses. Specifically, new taxes on income trust distributions have resulted in more than a dozen foreign takeover attempts in less than half a year. The trust tax, along with other government policies could threaten Canada’s economic sovereignty, according to Mr. Dion.
He is proposing specific remedies to what he describes as mistakes.
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.