RESEARCH ARTICLES
Mr. Werklund said in a press release that, In a sea of confusion and uncertainty, CCS Income Trust is confident that it is on solid ground. With a history of delivering value to unitholders, a phenomenal growth record and the best third quarter in history, CCS is confident the government’s “Tax Fairness Plan” won’t be derailing its growth plans.
Yves L. Fortin, an economist has written a paper that considers arguments that income trusts cause tax leakage. He concludes that there is no clearly articulated problem in terms of income trusts causing tax leakage based on information available to the public. The Income Trusts and Tax Leakage Analysis by Yves L. Fortinthrough the web site of the Canadian Association of Income Funds.
QUOTE:
“Either they didn’t do their homework [about trusts] and didn’t understand the issue, which means they are incompetent, or they did look at it and they flat out lied…You’ve either got an incompetent government or a bunch of liars.”
Trusts provide a “very good business model”, but “executives who support Ottawa’s tax changes just don’t understand income trusts”.
Article about Executive Survey
By Richard Blackwell
Report on Business, Globe & Mail
A quarterly survey of 175 chief executive officers, chief financial officers and chief operating officers was done by the Gandalf Group for Report on Business and ROB-TV. According to newspaper reports, the study showed that there is both “a dramatic split among those who back Ottawa’s move and those who dislike it” and has significantly diminished both trust and non-trust executives’ confidence in the government.
Statistics indicate that, “The [tax] ruling has emerged as a divisive issue, pitting those who run trusts against those in non-trust businesses, according to a new survey of top executives.”
The Ontario Teachers’ Pension Plan has advocated for a taxation policy on income trusts that does not discriminate against pension funds, and is “pleased to see that this is the case with the government’s announcement yesterday (October 31, 2006).”