How BCE insiders created the faux crisis for Flaherty to destroy trusts on behalf of Canada's corporate elite

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Debt Ridden: The story of the BCE deal

Theresa Tedesco, Chief Business Correspondent, Financial Post
Published: Saturday, September 27, 2008


In the end, BCE opted to convert itself into an income trust in mid-October, 2006.

Inside BCE's boardroom, the blue-ribbon directors weren't enthusiastic about the plan, but gave it their blessing, betting the measure was destined for doom because Ottawa would never allow it.

"Income trusts didn't have much appeal. We weren't particularly interested in doing an income trust but we thought if we announced we were doing one, it would force the government into a decision," said the source close to the company who asked not to be named.

They were right. Two weeks later, on Halloween, Finance Minister Jim Flaherty announced Ottawa would tax companies converting to income trusts to curb tax avoidance.