Specified Investment Flow-Through Trust (SIFT)

AAA

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 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.



RELATED TERMS
  1. Dividend

    A distribution of a portion of a company's earnings, decided ...
  2. Canadian Royalty Trust - CANROY

    An oil, gas or mineral company that is organized as a trust rather ...
  3. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  4. Income Trust

    An investment trust that holds income-producing assets and trades ...
  5. Royalty Income Trust

    A type of special-purpose financing created to hold investments ...
  6. Partnership

    A business organization in which two or more individuals manage ...
RELATED FAQS
  1. How can the price of a stock change on the ex-dividend date?

    An investor looking for a dividend-paying stock has two important dates to consider when investing in a company. The first ... Read Full Answer >>
  2. What are the drawbacks of a small investor buying blue-chip stocks?

    Blue-chip stocks are generally safer for investors. However, their drawbacks for small investors include moderate growth ... Read Full Answer >>
  3. What is the average annual dividend yield of companies in the automotive sector?

    As of May 2015, using trailing 12-month data, the annual dividend yields of industries in the automotive sector are 1.01% ... Read Full Answer >>
  4. What is the difference between Book Value Of Equity Per Share (BVPS) and book value ...

    There is no difference between book value of equity per share (BVPS) and book value over equity. The equation for a company's ... Read Full Answer >>
  5. Why should I pay attention to a dividend's ex-dividend date?

    Investors should pay attention to the ex-dividend date for a stock because it determines which stockholders qualify to receive ... Read Full Answer >>
  6. What is the smallest amount of shares I can buy?

    There is no minimum amount of shares that need to be bought in a single transaction, so an investor can purchase as little ... Read Full Answer >>
Related Articles
  1. Savings

    Tax-Saving Tips For Canadian Taxpayers

    Find out how to get a bigger return.
  2. Forex Strategies

    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. Retirement

    Tax Breaks For Canadian Families

    Canadians have a lot of advantages when it comes to family tax perks.
  4. Options & Futures

    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. Options & Futures

    An Introduction To Canadian Income Trusts

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

    Estate Planning For Canadians

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

    History Of The Toronto Stock Exchange

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

    How Does a Dividend Reinvestment Plan Work?

    A dividend reinvestment plan allows investors to use their dividends to purchase more shares of the corporation’s stock, rather than receiving payment.
  9. Investing

    Why Higher Rates Could Be Good News For Consumers

    While rates remain extraordinarily low by historical standards, in the last few months we have witnessed a modest change in the environment.
  10. Professionals

    Finding a Top Financial Advisor in Canada

    Choosing a financial advisor is a difficult and important job. A ranking of Canadian advisors can help you make the right decision.

You May Also Like

Hot Definitions
  1. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  2. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  3. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  4. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
  5. International Monetary Fund - IMF

    An international organization created for the purpose of: 1. Promoting global monetary and exchange stability. 2. Facilitating ...
  6. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!