livecasino35freespins| Canada's Trudeau abandons tax threat to apartment owners

Justin Trudeau's government has threatened to crack down on some Canadian real estate investment funds with a new tax system.Livecasino35freespinsHowever, due to opposition from the industry, the Trudeau government withdrew the threat.

On May 8, the Ministry of Finance issued a three-sentence statement on its website, saying that "there is no current consideration of changing the tax treatment of REITs." This eliminates the risk that has existed for more than two years at the Canadian apartment Real Estate Investment Trust (REITs).

In March 2022, Trudeau-his Liberal Party (Liberal Party) does not have a majority in the House of Commons (House of Commons)-reached a power-sharing agreement with the opposition New Democratic Party (New Democratic Party), agreeing to make a series of commitments in exchange for New Democratic Party (NDP) votes to help pass legislation. One of the promises is to solve the problem of "financializing the real estate market"-targeting corporate owners of apartments.

In the 2021 election, the Liberal Party promised to review tax rules and "curb" the exorbitant profits of residential property owners. According to the real estate investment trust structure, profits generally flow to shareholders and are taxed at that level. They're going to change that. Requiring REITs to pay corporate income tax, for example, may make them less attractive to investors because their valuations have been curbed by rising interest rates.

But the real estate industry hit back, saying the uncertainty brought about by government commitments raised their cost of capital, making it harder for them to develop new housing supplies.

"while more needs to be done to ensure that Canadians are not affected by the renovation and that Canadians can afford the lease, the government understands that real estate investment trusts provide a key channel for new investment in leased units," the Treasury statement said. CoStar first reported the statement.

"refurbishment" refers to the practice of driving tenants out to renovate apartments in order to charge higher rents.