Just saw this item on the Canadian government’s effort to curtail the income trust, which has gained popularity as a structure for Canadian corporations. The government wants to put the brakes on trusts to stem a drop in tax revenues.

This is challenging news for Yellow Pages Group, which has had great success operating as an income trust.

________________________

Update: Here is a wider sampling of coverage on this developing story.

MarketWatch notes that YPG took a nearly 19 percent hit to its unit price today as a result of this development.

This article in the Globe and Mail describes the announcement as a “bombshell.”

Bloomberg reports that one analyst at Merrill Lynch is predicted a “collapse” in fund valuations.