CALGARY, Feb. 28 /CNW/ - Based on leaked information to the media, the
Canadian Coalition of Energy Trusts believes the recommendations of the
Standing Committee on Finance concerning the Harper government's Tax Fairness
Plan is a giant step forward on getting it right.
The key recommendations by the finance committee are each followed by the
Coalition's position:The government should release the data and its methodology for scrutiny.
- The Coalition and others have sought this information since the
October 31st government announcement and the data has been purposely
withheld.
Income trust legislation should be a stand-alone bill.
- This is an important piece of legislation that has thus far caused
billions in losses to innocent Canadians and other investors. This
legislation warrants being considered independently.
There are superior and less damaging ways of handling the income trust
issue and recommends the Liberal solution of:
Replace the 31.5 per cent tax regime with a 10 per cent tax paid by
companies and refundable to Canadian investors;
Continue with the ban for the formation of new trusts but consider
representations from sectors that can conform to specific criteria
notably preserving the strengths of the energy income sector.
The report also recommends the Bloc position of extending the 4-year
grandfathering period to 10 years.
- These are considered steps in the right direction and the Coalition
is calling upon government to act."At last we have had meaningful consultation on the proposed change in
tax treatment of trusts," said Sue Riddell Rose, Co-Chair of the Coalition of
Canadian Energy Trusts. "The finance committee review considered expert
testimony on many sides of the issue and the committee found compelling
evidence to put forward these recommendations. Now, we hope government will
listen to the findings and modify its position."
The Coalition presented to the finance committee an in-depth report that
outlined the unique nature of energy trusts in Canada and their strong case
for receiving the same exemption as that granted to Real Estate Investment
Trusts. Expert witnesses offered advice and investors displayed the negative
impacts placed upon millions of hard working Canadians.
"It became abundantly clear that the government's decision was made in
haste and without all the facts," noted Riddell Rose. "It is difficult to know
what information drove the government's action because it refuses to release
any new data to support the Tax Fairness Plan."
The Coalition will thoroughly review the Finance Committee
recommendations once received. The Coalition's goal of seeking full energy
sector exemption remains and meetings with government members will be
scheduled by the Coalition in an effort to continue the consultation process
and to encourage amendments to the proposed Tax Fairness Plan.
For further information: Daorcey LeBray, Communication Incorporated,
(403) 266-2000, dlebray@comminc.ca; Information about the Coalition can be
found at: www.canadianenergytrusts.ca
