The Canadian Association of Income Funds (CAIF) today launched a campaign to correct misconceptions surrounding the industry that may affect the outcome of the federal government’s consultation process on the tax treatment of income trusts.

CAIF and its member businesses are dramatically increasing their efforts to set the record straight by rolling out a multi-faceted campaign that will support CAIF’s official consultation submission to the government in the coming weeks.

The campaign will involve bringing forward the concerns of Canadians to their MPs and provincial representatives, and building support from third party organizations.

“We think the industry has a tremendous story to tell about its positive contributions to the economy in terms of jobs and investment,” said CAIF President George Kesteven, in a release. “Through our campaign, we intend to dispel the popular myth that income trusts are responsible for causing “sluggishness” in the Canadian economy.”

Today’s campaign launch also coincides with the release of an Ipsos Reid public opinion survey which indicates most Canadians are on the industry’s side. The poll shows a clear majority of Canadians, some 66%, agree that any new taxes on income trusts would be a “bad idea.”

The campaign will also include the upcoming release of an HLB Decision Economics study of productivity in the industry and its role in capital formation and investment.

At present, more than 1million Canadians across the country own units in income trusts and several million more invest in income trusts indirectly through mutual funds and pension plans.

With a view to keeping members and investors up to date on the latest campaign, CAIF has developed an advocacy Web site.

“Many Canadian investors have expressed genuine concern that any tax changes for income trusts could put their retirement plans in severe jeopardy,” said Kesteven. “Through its advocacy efforts, CAIF will ensure the voices of these Canadians are heard by the federal government.”