Against the backdrop of the ongoing debate about the federal government’s October 31, 2006, policy on the taxation of income trusts, Canadian businesses are evaluating their options and looking for clues as to the government’s next steps in formalizing the new policy. But predicting those next steps and their impact on investment and finance sectors can be particularly challenging.
A new PricewaterhouseCoopers (PwC) report illuminates important facts that have been missing from the debate so far, and proposes positive changes. The PwC proposals steer Canada toward greater tax fairness, remove the disadvantage currently faced by the country’s pension plans and RRSP holders, and put conventional companies and income trusts on a more level playing field.
What you should know
This report has the potential to significantly affect people’s understanding of the income trust sector and help guide the Government in its next steps in implementing the details of its recent policy. It sheds 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
- New information on the economic performance of income trusts
- PwC proposal for policy alternatives
Read the full report to learn more about our proposed policy alternatives for income trust taxation.
