Sue's Blog

Wednesday, November 01, 2006

Come by Chance Stay by Chance 8

Feds announce new tax for Income Trusts
How will that impact Come by Chance?


Sue's Blog has been following the sale and purchase of the Come by Chance oil refinery for some months now.

The first post was regarding the type of company that was seeking to and eventually purchased the facility.

Canadian royalty trusts (CANROYs) grabbed dividend investors’ attention during 2003/2004 because many of their payouts were equating to 15% to 20% yields. Now, because so many investors are on to them, share prices have gone up, dropping yields for most to the 6% to 12% range.

The question is, what happens next?

See Post 1

More recently Sue's Blog raised the concern to Loyola Sullivan - Minister of Finance - that if he does not keep an eye on Ottawa - they may change the rules and that in turn could negatively impact Come by Chance. The Minister said nothing!

See Post 6

The time has now come and Federal Finance Minister Jim Flaherty has announced changes Income Trusts - and this will surely impact how much investment will be available for Come by Chance by its new owner Harvest Energy Trust.

See Globe and Mail Story

It appears that changes by the feds will give existing income/energy trusts 4 years to adjust to the new tax.

Loyola Sullivan needs to tell the people what he plans to do to protect the Come by Chance facility. The Premier needs to ask Harvest Energy if they plan to live up to investment commitments for the refinery.

2 comments:

Anonymous said...

Sue, I think your analogy of the hockey team is good, you might want to consider consider this one:

American Presidential Style..with an unelected cabinet( Dean mcDonald, Paul Hatcher etc) and the elected house of assembly controlled by the President.

Sue Kelland-Dyer said...

I agree - I should probably use political analogies - however - the Premier (President is so hung-up on the Danny Cup)