Subscribe to PwC's Tax Exchange blogThe number of Initial Public Offerings (or IPOs) in the last while has been quite low. And, as such, there might be some capital in the public market just waiting to be tapped into.
In the video below, I talk about how the original income trust structure that was used to tap into those public markets was killed in 2006 but has been brought back to life through PwC FAIT. I also talk about how the structure takes into consideration cross-border issues, how it's worked so far, and other issues to consider when going through an IPO.
What do you think? Could this be something that might apply to you and your organization? Leave your thoughts and comments below.
For those attending the Canadian Tax Foundation's Annual Conference in Calgary on November 26th, I look forward to seeing you there (and to talking more about this in detail)!
About Murray Lee:
Murray Lee is a Tax Services partner in the firm’s Calgary office. He has assisted both large and small clients in all aspects of Canada-U.S. taxation including reorganizations, mergers and acquisitions and cross-border financings. Murray has written several articles and made numerous presentations on various U.S. and cross border issues.
The current government has a clear position against the expansion of the income trust regime both from a true tax policy perspective and from a political perspective given the publicity over the closing of the old business income trusts implemented a number of years ago. These so called foreign asset investment trusts don't seem to run a foul of the purely techncial tax policy perspective of the current government. However, signficiant public discussions of such structures and discussions linking them to income trust might raise a political tax policy concern for the current government at the extrem could force them to modify the rules relevant to these so called foreign asset investment trusts. Do you think this is a valid concern?
Posted by: David Grosman | 11/13/2012 at 11:15 AM