{"id":489,"date":"2006-11-01T08:24:51","date_gmt":"2006-11-01T12:24:51","guid":{"rendered":"http:\/\/www.forgetful.ca\/?p=468"},"modified":"2006-11-01T08:24:51","modified_gmt":"2006-11-01T12:24:51","slug":"gak-income-trusts","status":"publish","type":"post","link":"http:\/\/forgetful.ca\/?p=489","title":{"rendered":"Gak!  Income Trusts \u2026"},"content":{"rendered":"<p>[Updated.\u00a0 Barf.]<\/p>\n<p>The conservatives announced <a target=\"_blank\" title=\"ouch.\" href=\"http:\/\/ctv2.theglobeandmail.com\/servlet\/story\/RTGAM.20061031.wtrusts1101\/business\/Business\/businessBN\/ctv-business\">changes to Canadian tax law<\/a> last night that will affect how companies structured as income trusts will pay tax.<\/p>\n<p>Before: companies structured as income trusts didn&#8217;t pay much tax.  Rather, they paid their profits to people who owned their stock, and it was taxed in their hands.<\/p>\n<p>Now: those companies will have to pay tax before paying their profits out to stockholders.<\/p>\n<p>If you own a canadian mutual fund, odds are this affects you.  If you own individual income trusts (like us), it definitely affects you.<\/p>\n<p>As an eye opener to those who may not follow the markets, here are the ones we hold and their closing price on Oct. 31, 2006.  I&#8217;ll update this post with their closing price on Nov. 1, 2006 tomorrow.<\/p>\n<ul>\n<li>Aeroplan AER.UN &#8211; $16.01 close $14.60 change -8.8%<\/li>\n<li>Brascan Rising Distribution BSD.UN &#8211; $11.26 close $9.10 change -19.2%<\/li>\n<li>Builders Energy Trust BET.UN &#8211; $14.77 close $11.85 change -19.8%<\/li>\n<li>Calpine Power CF.UN &#8211; $10.96 close $9.78 change -10.8%<\/li>\n<li>Northern Property Realty NPR.UN &#8211; $24.30 close $24.30 change 0%<\/li>\n<li>Energy Savings SIF.UN &#8211; $16.82 close $13.78 change -18.1%<\/li>\n<li>Telus (announced plans to convert) T &#8211; $64.93 close $56.15 change -13.5%<\/li>\n<\/ul>\n<p>I will say that this change makes sense.  This government (and the previous one) have legitimate concerns about companies changing to trusts to avoid tax.  However, a) something like this should *never* be a surprise and b) agreeing with the policy change is cold comfort in the face of a 20% decline in your holdings.  Investors don&#8217;t like uncertainty.<\/p>\n<p>It&#8217;s gonna be an ugly day on the markets &#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[Updated.\u00a0 Barf.] The conservatives announced changes to Canadian tax law last night that will affect how companies structured as income trusts will pay tax. Before: companies structured as income trusts didn&#8217;t pay much tax. Rather, they paid their profits to people who owned their stock, and it was taxed in their hands. Now: those companies [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0},"categories":[30],"tags":[],"_links":{"self":[{"href":"http:\/\/forgetful.ca\/index.php?rest_route=\/wp\/v2\/posts\/489"}],"collection":[{"href":"http:\/\/forgetful.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/forgetful.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/forgetful.ca\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/forgetful.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=489"}],"version-history":[{"count":0,"href":"http:\/\/forgetful.ca\/index.php?rest_route=\/wp\/v2\/posts\/489\/revisions"}],"wp:attachment":[{"href":"http:\/\/forgetful.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/forgetful.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=489"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/forgetful.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}