Flaherty's tax conundrum
April 18, 2007
John McCallum, the Liberal finance critic, said Canadians are starting to see the consequences of the trust tax.
"The effect of what he is doing is exactly the opposite of what he intended, because the holders of income trusts pay lots of tax," Mr. McCallum said. "All of these trusts are now being taken over in such a way so that the new owners will pay no tax.
"So, instead of a situation where a lot of personal taxes were being paid, you are having these induced takeovers by highly leveraged private-equity companies that will pay no tax."
Perhaps the Liberals would like to edify Canadians on how much this is costing taxpayers. Rather than Flaherty’s $500 million in phantom tax leakage widely reported in the press....what is the real tax leakage that is being incurred by Canadian taxpayers for the perverse privilege of having foreigners own Canadian companies?
Thursday, May 28, 2009
Posted by Fillibluster at 3:02 PM