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Ottawa, August 2, 2001
2001-067

Finance Minister Releases Revised Draft of Legislative Proposals for the Taxation of Non-Resident Trusts and Foreign Investment Entities

Related document:

• Legislative Proposals and Explanatory Notes on Taxation of Non-Resident Trusts and Foreign Investment Entities.

Finance Minister Paul Martin today released a revised draft of income tax legislation regarding the taxation of the income of non-resident trusts and foreign investment entities, and invited comments.

The proposed measures are designed to make the income tax system fairer and prevent tax avoidance by taxpayers that invest in or otherwise transfer property to offshore trusts and foreign investment entities. The proposals were first announced in the 1999 budget.

The revised legislative proposals released today reflect comments received by the Department on the previous draft, which was released on June 22, 2000. The Minister announced modifications to those legislative proposals on September 7, 2000, and extended the consultation period to the end of 2000 to permit taxpayers to make further representations.

Comments on the revised draft are to be submitted to the Department of Finance before the end of October 2001. Comments received by that date will be considered when the final legislation is prepared for tabling in Parliament.

The revised draft of legislative proposals and explanatory notes for the taxation of the income of non-resident trusts and foreign investment entities is available on the Department of Finance Web site at www.fin.gc.ca. Printed copies are available for $23 from the Department of Finance Distribution Centre at (613) 995-2855.

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