In 2011,the Canadian government made significant changes to its treatment of income trusts.What was the principal reason for this action?
A)Trusts were becoming too large compared to corporations.
B)Trusts offered unfair tax advantages compared to corporations.
C)The government did not have adequate legislative power to manage the activities of income trusts.
D)Corporations were able to successfully influence government policymakers to bring about these changes.

Question

Quizplus · Accepted Answer

The principal reason for the Canadian government's changes to its treatment of income trusts in 2011 was that they were offering unfair tax advantages compared to corporations, creating an uneven playing field in the market. These changes aimed to ensure that all businesses were taxed equally and fairly.

In 2011,the Canadian Government Made Significant Changes to Its Treatment