Bonavista Energy Trust

Website Links

Description

On October 31, 2006 the Government of Canada announced its "Tax Fairness Plan" which includes a proposed tax on distributions to unitholders of existing publicly traded income trusts commencing January 1, 2011. On June 12, 2007, Bill C-52 Budget Implementation Act, 2007, which contains legislative provisions to implement the proposals to tax publicly traded income trusts in Canada, received Third Reading in the Canadian House of Commons. The bill must still be passed by the Senate and be proclaimed into law, however it would be unusual for the Senate not to pass a bill that has received three readings in the House of Commons. The new tax is not expected to apply to Bonavista until 2011, as the government has provided a transition period for publicly traded trusts that existed prior to November 1, 2006 subject to complying with the "normal growth" parameters regarding equity capital as outlined by the government.

Companies nearby