Jim Flaherty, Canada's federal finance minister, announced at the end of October 2006 that income trusts would be levied with a distribution tax. And the news sent shockwaves throughout the country's financial markets.
The income trust structure has allowed companies to pay out a large chunk of their operating income to shareholders. By converting to an income trust, a company in essence transfers a substantial proportion of its tax liability to its unit holders. An income trust is essentiall