March 25, 2004

Alberta will introduce legislation to end uncertainty on income trust liability

Edmonton... As announced in Budget 2004, Alberta’s Revenue Minister Greg Melchin, will introduce legislation during the Spring Session that will limit liability for unit holders of publicly-traded income trusts. 

Income trusts are becoming a significant part of Alberta’s business sector and another source of investment opportunity for Albertans.  However, the possibility of unit holder liability has caused some uncertainty surrounding investing in income trusts. 

“Legislating limited liability makes sense,” said Alberta Revenue Minister Greg Melchin.  “It is also important to establish similar investor protection for unit holders as for shareholders.

Currently there are more than 130 publicly-traded income trusts listed on the TSX, comprising a total market capitalization of approximately $75 billion.  As more investors look to income trusts as an investment vehicle, investor protection becomes more important.  Legislation will respond to this and provide for rules similar to those under the Securities Act that apply to corporations.

For media inquiries, please contact:

Cathy Housdorff Director of Communications Alberta Revenue (780) 427-5364
Dial 310-0000 for toll free access outside of Edmonton.

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