Income Trust Laws in Canada
I'm a new IB analyst for one of the larger Canadian banks. I wanted to know if anyone could give me some idea as to the effect of the new tax fairness law in Canada (income trust taxation) on the deal flow...esp oil and gas. Right now in Canada we are in a position of some doubt as to the committment of our government toward the new laws on income trusts. What is the outlook for i-banks that work in Oil and Gas in Canada?
there's probably going to be a ton of consolidation of small income trusts in the near term, as well as a lot of income trusts re-IPOing as corporations as we get closer to the tax law changes
It has totally stalled the deal flow in the oil and gas industry. Mostly this is because of the "undue expansion" part of the act. Organisations are just waiting to see what will happen. It has already killed shiningbank/rider and crescent point/mission is uncertain.
I agree with thatguy, there is going to be a lot of consolidation in the trust sector. The trust model won't disappear entirely, though because there is still demand for the product.
Reprehenderit nobis dolor quod ex. Voluptatem eos harum aut facilis. Qui ducimus iure illo qui quia. Accusantium natus vel rerum cum. Soluta vitae cumque quos tenetur. Dolores beatae aperiam et quaerat sequi ad reprehenderit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...