Government is Ignoring Standing Committee Recommendations
OTTAWA, March 28 /CNW/ - George Kesteven, President of the Canadian
Association of Income Funds (CAIF), today expressed dismay at the inclusion of
the proposed income trust tax in the draft Budget 2007 implementation
legislation released yesterday.
The draft Bill was released yesterday in the form of a 'Notice of Ways
and Means Motion'. This Motion is expected to be voted on today by MPs. If
passed, it will authorize actual budget legislation to then be tabled in the
House of Commons in the coming weeks.
"The Government has chosen to act contrary to the Finance Committee's
Report where it recommended the Government reduce its 31.5% income trust
distribution tax to 10%, extend the four year transition period to 10 years
and introduce a stand-alone bill so the tax and its consequences could be
fully debated by all Parliamentarians," said Mr. Kesteven.
"The Committee's alternatives would be far less damaging to seniors,
retirees and other investors than Mr. Flaherty's destructive and punitive tax.
They would help seniors restore part of the $25 billion in savings they lost
when the Conservative government broke its election promise never to tax
income trusts," he said.
Mr. Kesteven added, "We are disappointed that the Minister has chosen to
bury this tax in the Budget Implementation Bill in the hope Canadians won't
notice. Everyone has noticed. We will be vigorously lobbying all MPs and the
provinces to support crucial amendments to the legislation."
For further information:
For further information: Brenda Paul-Ishikawa, CAIF, W: (416) 469-0188,
M: (416) 420-4538, email@example.com