Income Funds: Recent Developments of Importance
|Lawyer||Jarrett Freeman, Jon Northup, Stephen Pincus|
|Area||Tax, REITs and Income Securities|
Article originally published in the 2011 Lexpert/American Lawyer Guide to the Leading 500 Lawyers in Canada
Excerpt from "Income Funds: Recent Developments of Importance":
The October 31, 2006, announcement by the Department of Finance (Canada) that publicly traded income funds (other than qualifying real estate investment trusts (“Qualifying REITs”)) would be subject to tax in the same manner as corporations effectively ended the Canadian income fund era. At the time of the announcement, there were more than 250 publicly traded income funds (including REITs) with an aggregate market capitalization in excess of C$218 billion. During the previous decade, the Canadian income fund sector had grown exponentially and had provided many Canadian (and some international) issuers with an attractive alternative to maximize value by going public in Canada.