Thank you, Mr. Chair.
My name is Peter Carayiannis and I'm the director of legal and government relations with the Canadian Association of Income Funds. On behalf of the association's members, I thank the Minister of Finance, this committee, and its members for undertaking the important and significant work of a cross-country consultation in advance of the 2010 budget.
Our association made a key request to the finance committee in 2007 on the question of providing a legal framework for the conversion of income trusts to corporations without suffering any additional negative consequences. Our request in 2007 was endorsed by the finance committee in its final report, and I would note at this time that the request was directly in line and entirely consistent with all statements made by the Minister of Finance on the subject of conversion of income trusts to corporations.
The government released draft legislation in this regard in July 2008 and, in a notice of ways and means motion tabled in November 2008, proposed legislation to facilitate the conversions to corporate form along with certain other rules, both tightening and relieving the provisions surrounding such conversions. This motion, however, died on the order paper when Parliament was prorogued last year. However, in considering that motion, which died last year on the order paper, the association is cognizant of the fact that the legislative proposal, as it was tabled and which we have now twice reviewed over the past two years, makes it clear that the relieving provisions are strictly temporary in nature, given that the tax-deferred treatment on conversion terminates at the end of 2012. This deadline was never discussed or raised as an issue by the Minister of Finance in any public statements concerning the issue.
In establishing the deadline of December 31, 2012, with the result of requiring income trusts to convert to corporations or lose the tax-free rollover, the government is putting income trusts at a further disadvantage, and it is a disadvantage inconsistent with the government's stated goal of levelling the playing field. To this end, the association respectfully requests that this committee adopt a motion recommending that the conversion deadline of December 31, 2012, be eliminated.
Thank you for your time. I'd be pleased to take questions at your convenience.