TORONTO (November 24, 2005): The Ontario Teachers’ Pension Plan today welcomed Federal Finance Minister Ralph Goodale’s announcement of the reduction in personal income taxes on corporate common share dividends.
“We have been advocating for some time for an integration of personal and corporate income tax through the lowering of corporate tax and raising of dividend tax credits on common shares,” said Jim Leech, Teachers’ Senior Vice-President. Noting that this move does not benefit Canadian pension plans per se, he said “This will go a long way towards eliminating the current arbitrage between businesses organized as corporations and those organized in trust form.”
Mr. Leech added that Teachers’ is also glad to see that the Minister and his advisors appear to have listened to the concerns of the pension community to the issues raised in the Department of Finance’s consultation paper on income trusts.
The Ontario Teachers’ Pension Plan is an independent corporation responsible for investing the $88 billion fund and administering the pensions of Ontario’s 158,000 elementary and secondary school teachers and 101,000 retired teachers.
Responsibility for ensuring the pension plan is fully funded lies with the Ontario government and the Ontario Teachers’ Federation, the plan’s co-sponsors, who set benefit and contribution levels.
For more information contact:
Deborah Allan
Director, Communications
Ontario Teachers' Pension Plan
(416) 730-5347
deborah_allan@otpp.com
