Canada Proposes Trust Taxation...Selkirk??

[s_dooley24]

On Tuesday, Conservative Canadian Finance Minister Jim Flaherty proposed changes to the way income trusts are taxed. This move was in response to an ever-growing number of conversions of Canadian corporations to income trusts for the purpose of tax savings. Flaherty is proposing a tax on distributions from income trusts that will apply in 2007 for all new income trusts. Current trusts will not be subject to the new rules until 2011. The government's stated goal is to ensure a level playing field, as plans include reducing general corporate income tax rates. To appease pensioners and retirees who own income trusts, Flaherty also announced additional tax-relief measures. The Conservatives will need opposition support to enact any measures, and while the New Democratic Party may support these changes, there may be considerable stakeholder backlash.



Selkirk, I'm sure you have some thoughts and opinions on this and I would really like to hear them.

 

[selkirk]

Dooley was getting the treats ready to hand out, the Raven (poem) was playing in the back ground on the radio. and when it was over heard the news....it was a very scray ghost story.

Flaherty and the conservatives have broken a campaign promise. they have angered many of the people they rely on for support, people do not forget when the government costs them money. they have angered Bay Street (Bay Street/Wall Street), and even people in Alberta....even heard the annoucement compared to the National Energy program (the liberals brought on Alberta in the 70s).....the conservatives better have some large tax cuts or the liberals will win a majority.....all they have to do is pick a leader that can smile.....


would stay aways from the oil trusts, I only own Penwest PWT.un,...still own a small position. have a 46 call feb on the stock. however it is down to 35cdn. would rate the stock a hold...at best....and see what happen... would not have a large postion.

Have been reducing my position in most income trusts....even sold one and bought it back, cheaper, then it went down today...

some lost 20%, my worse was pwt.un down 14%, the reits were hardly hit as they will not be effected.

the government had to do something, they could not allow large corporations like Telus and especially BCE. talked to someone at my last shareclub and we both thought the end was near for the trusts.

BCE announcing they would go trust was the sign, you cannot as a government lose that much tax revenue.

would have preferred them to put on hold any new conversions and lower taxes on existing corporations.

instead they have wipe out 27 billion for cdn. and some US investors.

my income trust holdings are (listed on Toronto) : PWT.un, versacold, DR.un, atp.un, ats.un

and two reits Riocan and AN.un both held up well.

thanks
selkirk

 

[selkirk]

some of these income trusts are pure garbage and may go to zero, however many will be bought by private equity, take the company, increase debt....

the fun will begin soon.

thanks
selkirk

 

[selkirk]

correction the national energy program was 1980 not the 1970s. Alberta and Ottawa just bikered in the late 70s.

BA.un bell alliant BCE spinoff, trades on Toronto as a trust. owned less than 100 shares.

sold at $27.85 yesterday. went to 26.60 at the end of the day. before the trust announcement could have sold for $30.

only telcos (phone ) companies want to own is Telus, and Rogers.

Rogers wireless is doing great they doubled the div, and earnings have been great. also cable has done well.

Telus is in the west, and there wireless is strong also, probably helps that western cdn. is having the strongest economic growth in decades..,

BCE though once liked it, and may turn around have sold my position a while back.. their latest earnings report, was terrible. earnings dropped over 150 million.

would prefer Rogers and telus, though would be buy/ hold just because based on valuation the stocks are not cheap.

note: own Rogers and Telus. will also lose half my position of Telus this month at $52cdn. that hurts since it trades close to 60. have 52cdn. calls.

also have $48 Telus puts for november that will expire.

own 8 shares of BCE in a DRIP/SPP. will keep them..lol

thanks
selkirk