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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (25197)11/2/2006 9:17:36 AM
From: Spekulatius  Read Replies (1) of 78741
 
If they grandfather the existing trust, existing trusts will grow their assets much faster, as they can take advantage of their tax advantaged status. This would probably cause reverse takeovers, where a small trust company would take over large assets that otherwise would have formed a new trust.

I think this deal will be done because it does not make sense for the Canadian government and provinces to forgo taxation (for the most part when foreigners can and do own up to 50% of many of the trust's shares.
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