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Article: Income trusts--the new rules: new tax legislation levels the playing field between investments in corporations and income trusts.(management trends)
- Article from:
- CMA Management
- Article date:
- November 1, 2006
- Author:
CopyrightCOPYRIGHT 2006 Society of Management Accountants of Canada. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Income trusts have been a popular topic of discussion in the business marketplace for several years. Market capitalization in these trusts increased over $100 billion between 2000 and 2005. Growing investor interest can be attributed to a low interest rate environment, higher-than-average cash distributions and, of course, attractive tax treatment.
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With a growing number of businesses using the income trust structure, there has been heavy speculation regarding the federal government's plans for the taxation of income trusts. In the 2005 federal budget, the Liberals raised concerns about the volume of investments in income trusts. ...