Income Trusts    Finance Minister Addresses Issue of Income Trusts Finance Minister Addresses Issue of Income Trusts - Charles Rotenberg In the dying days of this Government, Finance Minister Ralph Goodale is introducing all sorts of income tax legislation. This afternoon, he purports to have addressed the, apparently, pressing issue of Income Trusts. He does so by increasing the dividend "gross up" in respect of certain dividends, from 25% to 45% and making appropriate changes to the dividend tax credit. According to the Department of Finance figures, this should put investors through public corporations who receive their profit by way of dividends on the same footing as those who invest through an income trust and receive their profit from the trust. Income Trusts are the investment vehicle of choice these days. They are designed to overcome a flaw in the tax system that imposes an element of double taxation on an investor in a corporation. Given the tax rates paid by the corporation and the additional tax rates imposed on the investor when profits are distributed by way of dividends, there is an excessive tax burden on this form of investment. More... You are receiving this e-mail because you have subscribed to one of our Drache LLP newsletters. You have complete control to review, update your newsletter options or unsubscribe at your discretion. If this email was forwarded to you, we invite you to subscribe to this newsletter or others that appeal to you. Your subscription information is private, please feel free to review our privacy policy. © Drache LLP Barristers & Solicitors, 222 Somerset St. W., 2nd Floor, Ottawa, Ontario K2P 2G3 Phone: (613) 233-2675 Facsimile: (613) 233-6752 Email: crotenberg@drache.com