Today Reuters published a news story (see below) that quoted Flaherty as saying “The whole purpose of the changes with respect to income trusts in 2006 was to ensure that there was fairness in the Canadian tax system, and we'll continue to aim at that goal”
Meanwhile the Reuters Principles (see below) that govern the reporting by Reuters states “ That Thomson Reuters shall supply unbiased and reliable news services to newspapers”
The comments by Flaherty are not just grossly biased, they are false. To suggest that a tax regime that allows the Public Sector Pension Plan to privately own artificially devalued Thunder Energy Trust or OMERs to own artificially devalued Teranet Income Fund and NOT PAY the 31.5% trust tax, whereas I HAVE TO pay the 31.5% tax when I hold those very same investments is nothing remotely akin to achieving “tax fairness in the Canadians tax system” unless you think discrimination is fair, and the 75% of Canadians without pensions (and no seat at the negotiating table) go to the back of the bus, while the 25% with pensions (and endless access to the Minister of Finance) go to the front of the bus,, where they exploit this tax advantage by predatorily acquiring these artificially devalued trusts in a scheme known as a tax arbitrage.
Reuters is required by its own governing principles of accurate and unbiased reporting to report on what I have just told them, which is that Flaherty’s statement is false and highly misleading to the Canadian public about what was actually achieved by his income trust tax policy, which is a complete unlevel playing field between the holding of trusts by pensions funds and the holding of trusts by RRSPs, when it needs to be understood that this is in complete defiance of why RRSPs were created by a Liberal government over 50 years ago, which was to create a level playing field between these two sub groups of investors and make them one equal class and not two classes, with one preying on the other employing bespoke tax loopholes and tax holidays.
Meanwhile Reuters is owned by the billionaire Thomson family of Toronto, and the Thomson family has exploited this gross unfairness as between the 31.5% tax loophole that applies to RRSPs but not to private trusts, in their predatory purchase of Sleep Country Canada Income Fund, placing Reuters in a conflict of interest position of the possible reasons why this gross unfairness went unreported in their article of today and allowed Flaherty’s words to go unrebutted when he falsely claimed the income trust tax policy was designed to create tax fairness. It did nothing of the sort.
Please correct the public misperception that you are fostering with this biased and factually misleading statement by Flaherty in your article of today.
Also please note the following conflict of interest as between Reuters and the income trust policy unfairness that you fail to draw to the attention of your readers, but which has not escaped the attention of your owners as they exploit it to their financial advantage. Is Canada a Third world Canada where discrimination is pawned off as Tax Fairness:
Westerkirk spreads wings with Sleep Country takeover
Globe and Mail
Thomson family (owner of Reuters) holding company Westerkirk Capital continued to move out of the shadow of its larger corporate cousin on Thursday by teaming up on the $356-million buyout of Sleep Company Canada Income Fund.
......ask Flaherty why the Thomson billionaire are getting away with paying ZERO taxes and no 31.5% tax as his idea of a Tax Fairness Plan. Tell any one of these 500+ people why they have become second class citizens to the Thomsons:
400) belleville Comments: I am 78yrs old and have been fighting throat cancer for 6yrs and survive on liquids. I do not have a pension and have a RRIF which was totally invested in energy trusts which I was advised to keep invested after the Harper Flaherty promise. My RIFF dropped about 80 thousand dollars and the cut the annual minimum payment in half. The result was that any enjoyment I hoped for was lost for ever.
Flaherty says to keep close eye on trusts
Wed Jan 27, 2010 10:14am EST
OTTAWA (Reuters) - The Canadian government will keep an eye on income trusts to make sure they do not avoid taxes when their favored tax status expires next year, Finance Minister Jim Flaherty said on Wednesday.
Flaherty was responding to a question, at a news conference on Haiti, about some income trusts trying to avoid paying tax in 2011. He said the government tries in each budget to close any loopholes it may find.
"If there's an issue with respect to the income trusts, then we'll look at that as well. The whole purpose of the changes with respect to income trusts in 2006 was to ensure that there was fairness in the Canadian tax system, and we'll continue to aim at that goal," he said.
(Reporting by Randall Palmer; Editing by Jeffrey Hodgson)
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Wednesday, January 27, 2010
Posted by Fillibluster at 5:58 PM