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NAFTA Trust Claims
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JOIN US!
Welcome. This web site is maintained by U.S. investors who are considering submitting a claim for damages against the Government of Canada under the NAFTA for its surprise decision to tax income trusts in the Canadian energy sector.
This web site provides information for foreign
investors in Canadian energy trusts about a damages claim that may be filed against the Canadian Government for its violations
of the NAFTA. On this web site you will find some answers to frequently asked questions, links to additional information,
and a form that you can use to learn more about getting involved.
BROKEN TRUST
On October 31, 2006, the Government of Canada caused massive destruction to the value of investment holdings of thousands
of individual foreign investors when it announced its change in the tax treatment of Canadian income trusts. These arbitrary
and discriminatory actions of the Government have effectively eliminated the income trust model for investments in the energy
sector in Canada. The surprise announcement represented a sudden and dramatic reversal of the promises made by the Government
of Canada to foreign investors on this issue.
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Click here to watch Prime Minister Harper promise not to tax trusts.
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For Immediate Release
INCOME TRUST FALL-OUT:
AMERICAN COUPLE THE FIRST TO LAUNCH NAFTA CHALLENGE AGAINST GOVERNMENT OF CANADA FOR ELIMINATING INCOME TRUSTS; INVITING OTHERS TO JOIN
OTTAWA – OCTOBER 30, 2007 – Marvin and Elaine Gottlieb are taking on Prime Minister Stephen Harper, Finance Minister Jim Flaherty and the Canadian government for the Halloween 2006 broken promise on the elimination of income trusts. The Chicago couple are the first Americans to file a Notice of Intent to Submit a Claim to Arbitration under the North American Free Trade Agreement (NAFTA). The couple are among the thousands of US investors who lost a total of $5 billion dollars in the fall-out from the Conservative Government’s decision last year to effectively tax income trusts in the energy sector out of existence.
“The Halloween 2006 income trust decision by the Government of Canada has had a massive financial impact
on thousands of investors in Canada and the U.S. and we believe that it breached Canada’s NAFTA obligations”,
said Marvin Gottlieb. “Because of this decision, more than $30 billion has been lost by individual investors in Canada
and more than $5 billion has been lost by energy trust investors, including Elaine and me, in the United States.
“Based on Stephen Harper’s very public promise, thousands of individuals and grandparents like us invested our hard earned money in income trusts and energy trusts. This is not just a nightmare on Bay Street. It’s a nightmare on Wall Street. But worse, it’s been a nightmare on Main Street”.
Under the NAFTA, Canada is not allowed to target other NAFTA citizens when they impose new measures. Mr. Flaherty is on record that energy trusts were included because of their high U.S. ownership, while Real Estate Investment Trusts, owned mostly by Canadians, were excluded. The NAFTA also stipulates that Canada must pay compensation for destroying investment by U.S. investors. The Government of Canada’s 2006 Halloween tax changes for income trusts were designed to eliminate the income trust model for investment by U.S. citizens. The NAFTA says that U.S. investors are entitled to rely upon Canadian government promises. Mr. Harper repeatedly made a public promise that his Government would not tax trusts, as had the previous Liberal Government. Canada’s tax treaty with the United States also says that trust income will not be taxed at more than 15%.
“Right now we are the first Americans to launch a NAFTA action related to the taxation of energy trusts. I know there are thousands of investors out there like Elaine and me, and I expect that many will join us”, Mr. Gottlieb concluded.
The NAFTA provides protection for Americans and Mexicans in Canada, just as it provides protection for Canadians
doing business in Mexico and the United States.
Media Inquiries
Susan Smith , Bluesky Strategy Group,
t: 613-241-3512 c:613-371-0624
susan@blueskystrategygroup.com
Investor Inquiries
Rick Schechter, M Gottlieb Associates Inc.,
t: 773-775-0873
info@naftatrustclaims.com