Secretary of State (International Financial Institutions), Maurizio Bevilacqua tabled in the House of Commons today a Notice of Ways and Means Motion to amend provisions of the Income Tax Act relating to the taxation non-resident trusts and foreign investment entities.

The proposed measures are intended to make the income tax system fairer and prevent tax avoidance by taxpayers that invest in or otherwise transfer property to offshore trusts or funds. The proposals were first announced in the 1999 budget. Earlier drafts were released for comment on June 22, 2000, and August 2, 2001. The revised legislative proposals being released today include a number of modifications reflecting the comments received by the Department in the course of the most recent consultation process.

Generally, the proposals would take effect for taxation years that begin after 2002.