iTrust Institute

iTrust Institute

January 30, 2007 11:03 ET

The iTrust Institute Provided Facts and Questions for Finance Committee Members in Preparation for Income Trust Study

TORONTO, ONTARIO--(CCNMatthews - Jan. 30, 2007) -

ATTENTION BUSINESS, INVESTOR, ECONOMIC & POLITICAL EDITORS/REPORTERS

In response to explicit requests for solid information about income trusts, iTrust Institute has prepared a series of facts and questions in a preparatory document for members of the Finance Committee. And as a non-partisan organization, the Institute made this background document available to all members of the Finance Committee at the same time as it begins to hear presentations from witnesses for its first day of Income Trust Study.

Institute President, Leslie Hayman, said that, "Despite the Minister of Finance's last minute news bombardment with stories of mounting threats of tax loss from the trust sector, these income trust hearings are very important as a means for the public and policy makers to understand the real risks and concerns of income trusts and their taxation."

"This is not such a simple issue because the tax system is so complex," said Ms. Hayman. "The system is what requires an overhaul."

She added that, "Discussion of taxation is of great importance to all Canadians. Particularly a major decision like we have here to tax just income trust owners who already pay tax, in favor of reducing taxes and further allowing tax avoidance schemes for foreign investors, is the kind of decision that warrants public understanding before we simply accept it into law."

The iTrust Institute applauds all Parties for allowing the Finance Committee's public pre-hearings for its Income Trust Study. The Institute seeks to brief the Committee directly. The group aims in any case to inform Committee members so that they can ask meaningful and focused questions in the context of factual considerations.

Ms. Hayman commented that, "These hearings are too important to allow for a political circus with all the usual players at risk of mistaken or misleading conclusions from narrowly defined arguments to suggest that all income trusts are good or, as the Minister of Finance suggests, that all income trusts are bad. Our representatives in government and employees in the civil service are much smarter and more capable than such propaganda would suggest. The Institute wants to help ensure due consideration is made by those with the interest to do so."

A copy of the Background Facts and Questions can be found, for public and media reference on the Institute Web site.

ABOUT THE INSTITUTE

The iTrust Institute is an independent, non-partisan organization that provides research and education services to members and others.

The Institute was born in early 2006 from the interests of members in TrustInvestor, a leading independent information resource for more than 3993 members including investors, advisors, brokers, bankers, traders, financial professionals, market makers & issuers. That number now approaches 5000 as Liberal tax policy and Conservative election promises helped popularize income trusts in early 2005.

The iTrust Institute was incorporated as a federal not-for-profit organization as a means to address the information needs of a public and government seen as divided during the Department of Finance Consultation of 2005. At that time, many sensed growing need for specialized education and objective information in regard to the securities and their market.

With surprise imposition of new taxes and rules on flow-through entities in 2006, the Canadian government increased the urgency for good information to ensure effective policy that has positive impact on Canadians and our economy, today and tomorrow.

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