Income Trusts

Income trusts' wave of expansion and ready access to capital came to an abrupt end on October 31, 2006, when Finance Minister Jim Flaherty announced a tax on publicly listed income trusts and limited partnerships. PricewaterhouseCoopers has published Income Trusts: Planning for 2011 and beyond to help investors and managers by summarizing the key business, strategic and tax issues facing income trusts and the advantages and disadvantages of various options.

Planning for 2011 and beyond (451 KB) Download the full PDF report.

Income Trust Report (December 11, 2006)

PwC also released a report in December of 2006 that illuminates important facts that had been missing from the debate and recommended positive changes. The PwC proposals steer Canada toward greater tax fairness, remove the disadvantage currently facing the country's pension plans and RRSP holders, and put conventional companies and income trusts on a more level playing field.

It shed new light on the real performance of income trusts, their role in the Canadian economy and the tax implications of trusts.

The report includes:

• A comprehensive look at estimates of federal tax leakage from income trusts
• A review of the economic implications of income trusts
• A review of macroeconomic considerations
• Information on the economic performance of income trusts
• PwC proposal for policy alternatives

	Income Trust Report (December 11, 2006) (503 KB) Download the full PDF report.
	Income Trust Report Executive Summary (457 KB) Download the full PDF executive summary.
	Income Trust Financial Survey (56 KB) Download the full PDF financial survey.

The following Tax Memos can also provide you with additional context on the income trust issue:

• More Tinkering with the SIFT rules

For more information, please contact your PricewaterhouseCoopers adviser or any of the individuals listed on page 16 of Income Trusts: Planning for 2011 and beyond for more help.