Canoe EIT Income 4.80 Cumulative Redeemable Pref shs Series 1 T.EIT.PR.A

Half a silver lining?

[gilbert3]

I got this email from TD Waterhouse: The income trust sector was down 12.43% today as a result of yesterday's tax announcement from the Finance Minister, Jim Flaherty. Unfortunately we were not provided with much in the way of further details today. What we do know is that the income trust structure will be taxed similar to the corporate structure. As such, it appears that income trust distributions will be taxed at a rate of 31.5%, but investors will now have the benefit of applying the dividend tax credit to these distributions. For a non-registered investment account, the end result will be very little change; however, for a registered account, the tax will be significant (i.e. 31.5%) because registered investment accounts will not have the benefit of the dividend tax credit. For those who have Trust in RSP the Conservatives have screwed you, but if you push your MP to have this Tax Credit pass on to your RSP accounts. Steven Harper lied and it's up to him fix it.