Don Boudria, Minister of State, tabled today in the House of Commons a Notice of Ways and Means Motion to amend provisions of the Income Tax Act relating to the taxation of income of non-resident trusts and foreign investment entities.

The proposed measures are designed to ensure that Canada taxes investment income earned by Canadians through foreign intermediaries in the same manner that that income would have been taxed if the underlying investment had been made directly. The proposals were first announced in the 1999 budget.

Earlier drafts were released for comment in June 2000, August 2001 and October 2002. The revised legislative proposals being released today include a number of modifications reflecting comments received by the Department of Finance in the course of the most recent consultation process.

Generally, the proposals would take effect for taxation years that begin after 2002. References to “Announcement Date” in the revised legislative proposals should be read as referring to today’s date.

These documents are available on the Department of Finance Web site at www.fin.gc.ca.