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Why Did Income Trusts Become Less Popular with Investors in Canada

Question 22

Multiple Choice

Why did income trusts become less popular with investors in Canada after October 31, 2006?


A) A new income trust tax was announced which increased taxes on income trusts.
B) New measures in GAAP made it harder to defer profits.
C) Income trusts lost their status to be bought as RRSP investments.
D) Ownership laws changed requiring a minimum 50% Canadian ownership of income trusts.
E) The creation of income trusts were banned.

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