The Canadian Press | October 30, 2007
U.S. couple sues over income-trust taxes
OTTAWA - A Chicago couple is launching a challenge under the North American Free Trade Agreement after they lost money when the Conservative government opted to tax income trusts last year.
Marvin and Elaine Gottlieb say they are among thousands of U.S. investors who lost a total of $5-billion in the fallout from the decision to effectively tax income trusts in the energy sector “out of existence.”
Mr. Gottlieb said Ottawa breached Canada’s NAFTA obligations by imposing a 31.5-per-cent tax on income trusts, to take effect in 2011.
The Oct. 31, 2006, decision wiped about $20-billion from the income-trust sector the day after it was announced.
Mr. Gottlieb said the decision cost Canadian investors more than $30-billion.