Department of Finance Releases Revised Income Trust/REIT Rules
|Area||REITs and Income Securities|
On March 27, 2007, the Department of Finance released, as part of its 2007 Budget implementation package, revised draft legislation implementing the proposed entity-level tax on certain publicly listed (or traded) trusts and partnerships. The changes made from the draft legislation initially introduced on December 21, 2006 appear to be primarily intended to address certain technical deficiencies that prevented most real estate investment trusts (“REITs”) from qualifying for the proposed exemption from this tax. The revised legislation also explicitly incorporates the “normal growth” limitations on transitional relief released by the Department of Finance on December 15, 2006. The mechanics of the proposed tax remain substantively similar to the initial proposals.