Investopedia

Continue to Site »

Specified Investment Flow-Through Trust (SIFT)

Filed Under » ,
Dictionary Says

Definition of 'Specified Investment Flow-Through Trust (SIFT)'

A type of income trust that holds publicly traded investments, has at least one non-portfolio property, and is resident in Canada. SIFT trusts are a common type of business structure in Canada. The trusts were intended to provide tax advantages for non-commercial investments, but became widely used by commercial businesses. The United States and Australia formerly had similar business entities.
Investopedia Says

Investopedia explains 'Specified Investment Flow-Through Trust (SIFT)'

The Canadian government decided that the tax advantages businesses had by using SIFT trusts as opposed to a corporate structure were "not appropriate", and in October 2006 enacted a tax fairness plan that included a provision for taxing distributions on publicly traded income trusts. The provisions went into effect for preexisting income trusts beginning January 1, 2011, and for new income trusts (after October 2006) beginning January 1, 2007. Many preexisting SIFT trusts decided to convert to a corporate ownership structure because of these changes to the tax law.

Articles Of Interest

  1.

    Tax-Saving Tips For Canadian Taxpayers

    Find out how to get a bigger return.

  2. Canada's Commodity Currency: Oil And The Loonie

    When the price of oil goes up, don't worry about how much gas is going to cost - get even by making a play on the Canadian dollar.

  3. Tax Breaks For Canadian Families

    Canadians have a lot of advantages when it comes to family tax perks.

  4. Segregated Funds: Investment Protection For Canadian Citizens

    These funds contain the best of all worlds, providing opportunities for market growth with a no-loss guarantee.

  5. Estate Planning For Canadians

    Trusts, wills, taxes and rules differ by country. Find out what you need to know about estate plans in Canada.

  6. History Of The Toronto Stock Exchange

    Find out how the third-largest stock exchange in North America came to be.

  7. An Introduction To Canadian Income Trusts

    Yields in excess of 10% aren't rare, but these unique investments need to be chosen very carefully.

  8. Build A Dividend Portfolio That Grows With You

    Balance risk and return to produce adequate income despite inflation.

  9. The Power Of Dividend Growth

    Dividends may not seem exciting, but they can certainly be lucrative. Learn more here!

  10. The Impact Of Mark Carney Leaving Bank Of Canada To Take Over Bank Of England

    Canada's loss is the U.K.'s gain, as Mark Carney goes overseas to take over the Bank of England.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Abatement Cost

    A cost borne by many businesses for the removal and/or reduction of an undesirable item that they have created.

  2. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  3. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  4. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  5. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  6. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
Trading Center