A tax implemented by the Canadian government on the distributions of a special type of Canadian income trust. SIFT trusts was a common business structure in
In October, 2006, the Canadian government decided that the tax advantages available to SIFT trusts were "not appropriate" , and implemented a new tax under the Tax Fairness Plan that made SIFT taxation similar to corporate taxation.
Prior to the imposition of the new tax, income trusts comprised roughly 10% of companies traded on the Toronto Stock Exchange, with a large number of those being energy companies. As a result of the change in tax law, many SIFT trusts converted to a corporate structure. The tax became effective for preexisting income trusts on