Examples of SIFT Trust in a sentence
Notwithstanding anything else contained in this Declaration of Trust, the Trust shall not make any investment, take any action or omit to take any action that would result in the Trust failing or ceasing to qualify as a “mutual fund trust” within the meaning of the Tax Act and the Trust shall use its reasonable efforts not to be a SIFT Trust at any time, provided it is in the best interests of Unitholders as determined by the Trustees, acting reasonably.
If the SIFT Trust rules were to apply to the Fund, the tax consequences would be materially and adversely different from those described below.
The Tax Act imposes tax on certain earnings of a SIFT Trust at a rate comparable to the combined federal and provincial corporate tax rate for a public corporation.
Assuming the Units will not be listed or traded on a stock exchange and that there is no trading system or other organized facility on which the Units will be listed or traded, the Fund should not constitute a SIFT trust and thus should not be liable to tax under the SIFT Trust rules.
In order to qualify as a SIFT Trust, among other things, “investments” in the trust must be listed or traded on a stock exchange or other public market.