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  1. Yangming Li
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    An income trust is a non-corporate form of business organization.

    Started in 2001, business income trusts hold debt and equity of an operating entity (taxed as a corporation).

    The business income trust is a partnership and its income is not subject to corporate income tax.

    This allowed income trust unit holders to avoid paying taxes on this income.

    The business income trust sector experienced significant growth due to the tax advantage.

    In the fall of 2006 the government announced plans to eliminate this tax advantage by applying corporate tax rates to income trusts (except REITs).

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