Ottawa, July 20, 2011
Archived - Government of Canada Announces Amendments to the Taxation of Specified Investment Flow-Through Entities, Real Estate Investment Trusts and Publicly-Traded Corporations
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- Backgrounder: Amendments to the Taxation of Specified Investment Flow-Through Entities, Real Estate Investment Trusts and Publicly-Traded Corporations
The Honourable Jim Flaherty, Minister of Finance, today announced proposed amendments to the provisions in the Income Tax Act concerning the income tax treatment of specified investment flow-through entities (SIFTs), real estate investment trusts (REITs) and publicly-traded corporations.
The SIFT rules, first announced as part of the Government’s Tax Fairness Plan on October 31, 2006, have restored balance and fairness to the income tax system by leveling the playing field between publicly-traded trusts and partnerships and public corporations. Today’s announcement reinforces the Government’s commitment to fairness in the tax system.
“These proposed measures will ensure that the policy objectives of the Tax Fairness Plan continue to be met,” said Minister Flaherty. “They also reflect our Government’s ongoing commitment to address structures that frustrate those policy objectives.”
The proposed amendments also include adjustments to the SIFT rules that are of a more technical nature.
The proposals include changes in respect of:
- publicly-traded stapled securities of SIFTs, REITs and corporations;
- excluded subsidiary entities under the SIFT regime;
- non-portfolio property of a corporation under the SIFT regime; and
- tax instalments for SIFTs.
The attached backgrounder describes the proposed amendments in detail. The Government will introduce income tax legislation to give effect to today’s announced proposals at the earliest opportunity.
For further information, media may contact:
Mary Ann Dewey-Plante
Office of the Minister of Finance
Department of Finance
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