NEWS WATCH
The Canadian Association of Income Funds, representing hundreds of companies structured as income trusts on the Canadian market, have issued a press release entitled, “Minister Flaherty, You have other options”. The release said that, “reckless Government decision breaks Canadians’ trust” with “Billions Of Dollars Lost”. Along with ad hoc groups of trust issuers and investors, the organization has proposed political action to prevent new taxation of distributions from income trusts.
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.