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Investopedia explains 'Halloween Massacre'
Income trusts, which were permitted to make distributions to unit holders on a pretax basis under old Canadian income tax laws, were a popular investment vehicle in the early 2000s, especially in Canada. The Canadian energy sector was hardest hit by the change, and suffered an estimated loss of about $35 billion to investors, giving rise to the term "massacre".
This change in the Canadian tax law, which was largely debated after the fact, was made to remedy a perceived loss of tax revenue.
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