In 2006,the Canadian Government Effectively Neutralized the Tax Advantages That

In 2006,the Canadian government effectively neutralized the tax advantages that had existed for most income trusts,relative to firms set up as corporations. The advantages that existed for income trusts prior to these changes were that

A) income trusts avoided double taxation in that the Canada Revenue Agency did not collect corporate taxes but rather collected only personal taxes from income trust unit holders.
B) income trusts effectively afforded unlimited liability to unit holders while corporate shareholders could face unlimited liability.
C) while double taxation existed for both income trusts and corporations, the net tax paid by income trust unit holders was in most cases less than that paid by corporate shareholders.
D) the changes introduced in 2006 eliminated double taxation for corporations, thereby making the taxation of income trusts and corporations substantially equivalent.