I did a check to see what the situation was on these investment instruments after they fell out of grace because of the planned tax by the Canadian government which will effectively lower the distributions of these income trusts by 2011.
It seems that nothing much has changed since I last read the news. The finance minister is still coming under strong criticism from opposition parties because of the new tax ruling. The reason why the tax ruling was changed was due to a white paper released by the Department of Finance that estimated 300million Canadian dollars in tax money was being leaked away because corporations were using the income trusts structure to avoid taxes. When news of the new tax ruling broke out, billions of dollars were wiped out as the income trusts tanked.
Nothing has changed thus far and it is best that investors wait at the sidelines.
No comments:
Post a Comment