CARP, Canada’s Association for the Fifty-Plus, today called upon the federal government to exempt all current income trusts from its new tax regime, as it has done for Real Estate Income Trusts (REITS).
At the very least, the four-year grace period for current income trusts before the new tax regime is imposed should be extended to 10 years, CARP said.
Such an adjustment will allow seniors and those who are preparing for retirement with investments in income trusts more time to make appropriate financial adjustments. This is what CARP is hearing from many members, especially women whose life expectancy in retirement is greater than that of men.
Extending the deadline would not undermine what the government is trying to achieve with its new tax policy to prevent the creation of new income trusts.
A 10-year grace period was adopted by the US Government in 1987 when it imposed a new tax regime on publicly traded partnerships (PTPs), which were similar to income trusts.
CARP is urging its membership to use E-voice feature of its Web site at www.50plus.com to contact MPs, the Prime Minister, the Minister of Finance and the Cabinet about the CARP’s proposal.