Income Trusts: Added to S&P/TSX Composite Index

Topics:
Financial Regulations,
Financial Research,
Taxes
Tags:
Aon Corp.,
Finance,
Income,
Operational Accounting
Source:
Aon

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Overview: This paper defines that an income trust is a financial instrument designed to raise capital through an offering of interests, or units, and invest the capital in securities of a holding company which owns an operating business. The operating business produces an income stream of interest and dividends which is distributed to the holding company and, in turn, back to the unit holders of the income trust. The income trust itself is not subject to taxation, and a variety of structuring mechanisms are utilized to maximize the distributable cash flow by lowering the overall tax burden of the operating company and its related entities.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 89KB | Date: Feb 2005 | Pages: 3


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