Canadian Income Trusts Scored One For the HOME TEAM!

Liberals say change income-trust tax level and help investors

OTTAWA (CP) - Drastically cutting the tax on income trusts and making it refundable to Canadian residents could help investors recoup two-thirds of the billions they lost when the government announced its plan to tax the trusts last fall, the Liberals said Tuesday.

Liberal Leader Stephane Dion and finance critic John McCallum, a former bank economist, said their plan would help revitalize the income-trust sector and help thousands of investors who saw billions of dollars vanish in the wake of the government’s Oct. 31 announcement.

They said the 31.5 per cent tax imposed by the Conservatives should be replaced by a 10 per cent tax refundable to Canadian residents.
This, they said, would make up for the tax “leakage” lost to "read more>>"