Flaherty says to keep close eye on trusts

Wed Jan 27, 2010 10:14am EST
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OTTAWA (Reuters) - The Canadian government will keep an eye on income trusts to make sure they do not avoid taxes when their favored tax status expires next year, Finance Minister Jim Flaherty said on Wednesday.

Flaherty was responding to a question, at a news conference on Haiti, about some income trusts trying to avoid paying tax in 2011. He said the government tries in each budget to close any loopholes it may find.

"If there's an issue with respect to the income trusts, then we'll look at that as well. The whole purpose of the changes with respect to income trusts in 2006 was to ensure that there was fairness in the Canadian tax system, and we'll continue to aim at that goal," he said.

(Reporting by Randall Palmer; Editing by Jeffrey Hodgson)

<p>Canada's Finance Minister Jim Flaherty speaks during an interview with Reuters in Ottawa December 21, 2009. REUTERS/Chris Wattie</p>