Which of the following statements best describes income trusts?
A) Income trust investors do not need to pay personal taxes on cash distribution received.
B) Income trusts face the same issue of double taxation as corporations.
C) Up to 2011, existing income trusts are allowed to treat their equity as debt for tax purposes.
D) Income trusts usually require significant capital reinvestment in the businesses.

Question

Quizplus · Accepted Answer

Up to 2011, existing income trusts in Canada were allowed to treat their equity as debt for tax purposes, which provided tax advantages.

Which of the Following Statements Best Describes Income Trusts