But who would this really affect? I saw the news and apparently the TSX was plunging on that news this morning...
And we have a Conservative govt too! Although Stephen Harper was invited to Bilderberg way back when he was the leader of the fringe Reform party. Now he is Prime Minister. What a concidence. Gee, I wonder what masters he serves: Joe Schmoe, or Bilderberg elite?
The government's position appears to be... That a Giant Tax Loophole had been discovered... And 250 corporations have quickly exploited it... And now the Party Is Over. This should have been 100% predictable.
This is a classic example that the Risk of Ruin... is very real. Hedge funds that were leveraged 6:1... And long these trusts that are correcting 10-15%... Could be pretty much wiped out. External bombshells like this... happen more often than people realize. I live in Toronto but trade only US stocks... But if I was trading Canadian stocks... I would probably be something like 55/45 long/short income trusts... And absorb about a 4-5% hit at 2:1 leverage... But then you make a killing on the wild volatility for the next few weeks.
The interesting question remains if US investors will be essentially triple taxed on canroy dividents. Currently if you exceed the limit on US credit for canroys you pay 15% to Canada and 15% to US. With the addition of a corporate tax that's another withholding layer. Now if they somehow stop double taxation of US investors on divvies things may not be as bad. Or maybe this is just wishfull thinking...
Hounddog, Couldn't have said it any better than that....there is no was the gov. is going to let that many tax dollars slip through it fingers...It was just a matter of time before it happened.
This was a threefold problem for canadian government. American gov was not happy about so much money coming into these things, canadian gov tax loss, but most important , the canadian dollar was going up too high and manufacturing is going to hell. I suspect though the oil sands will not permit canadian dollar to drop too far.
Why not just initiate the corporate tax on new trusts and grandfather the existing ones in? That way seniors and others dependent on trust income don't see their income go down as well as their net worth.