New Dividend Tax Credit Rules    Finance Minister Addresses Issue of Income Trusts    New Dividend Tax Credit Rules - Major Tax Planning Potential    Draft Changes to Dividend Taxation – Get a GRIP! 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... New Dividend Tax Credit Rules - Major Tax Planning Potential - Charles Rotenberg On November 23rd, 2005, Finance Minister Ralph Goodale tabled a proposal to level the playing field as between public company investments and income trust investments. But the new rules could result in a major benefit for family and estate planning. More... Draft Changes to Dividend Taxation – Get a GRIP! - Charles Rotenberg The Minister of Finance has now tabled the draft legislation to implement the change to the rules related to the taxation of dividends. Originally introduced by Ralph Goodale in November, 2005, these rules are primarily designed to level the playing field between the taxation of distributions from public companies and from income trusts. However, the changes bring significant tax planning opportunities for taxpayers and their corporations. The rules are effective for any dividend paid after 2005. These changes were discussed in our Newsletter, New Dividend Tax Credit Rules - Major Tax Planning Potential, and in our 2006 Budget Commentary. 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