By Staff | December 22, 2006 | Last updated on December 22, 2006
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(December 22, 2006) The federal government has tabled a draft version of the legislation that will impose a tax on income trusts, under the Tax Fairness Plan, announced October 31.

In a superfluous adherence to the legislative process, the government is now seeking “constructive commentary” on the plan. There has already been ample hue and cry over the plan, which gives existing trusts four years to work out a strategy for coping with the tax, which will be effective January 1, 2011.

“[The] government is taking these important steps to restore balance and fairness to Canada’s tax system,” said Finance Minister Jim Flaherty. “If corporations don’t pay their share of taxes, this tax burden will be shifted onto the shoulders of hard-working individuals and families.”

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Feds announce 2007 benefits rate

(December 22, 2006) The federal government has announced new rates for CPP and OAS benefits. Canadians currently receiving CPP benefits will see an increase of 2.1% in the new year.

OAS payments will remain unchanged at $491.93 per month, although over the past year, benefits have risen 2.5%. Guaranteed Income Supplement payments will rise by $18 per month for single recipients, while couples will see an increase of $29 per month, effective January 1, 2007.

CPP rates are adjusted annually to reflect CPI inflation, while OAS benefits are adjusted quarterly.

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Cinnamon Investments names new fund advisor

(December 22, 2006) Cinnamon Investments has announced it is replacing the advisor on Ravensource Fund, a closed-end trust focused on absolute returns through capital gains.

Effective January 1, 2007, McElvaine Investment Management will replace K. J. Harrison & Partners. The change will not affect the expenses for investors, as Cinnamon is responsible for any and all fees charged by the investment advisor.

McElvaine currently acts as the portfolio advisor for the McElvaine Investment Trust and the McElvaine Limited Partnership.

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Mavrix files prospectus for limited partnership

(December 22, 2006) Mavrix Fund Management Inc has filed a preliminary prospectus for the Mavrix Explore Quebec 2007-I FT Limited Partnership. The LP will invest in a diversified portfolio of flow-through shares issued primarily by mining companies with exploration activities in Quebec, Mavrix said in a release.

The maximum size of this offering is $25 million and it is being co-led by Desjardins Securities and CIBC World Markets. Other syndicate members include TD Securities, Canaccord Capital, Dundee Securities, Laurentian Bank Securities, Berkshire Securities, Industrial Alliance Securities and Richardson Partners Financial.

Mavrix has managed nine Resource Flow-Through Limited Partnerships that have raised more than $250 million in proceeds.

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(12/22/06) staff


The staff of have been covering news for financial advisors since 1998.