Annual lists 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995

Ottawa, December 17, 2001
2001-120

Non-Resident Trusts and Foreign Investment Entities

Finance Minister Paul Martin today announced a one-year delay of the effective date of income tax proposals affecting non-resident trusts and foreign investment entities.

Draft income tax legislation to implement these proposals, which were first put forward in the 1999 budget, was released for comment on August 2, 2001. Several detailed submissions have recently been received by the Department concerning the proposed legislation. Minister Martin noted that it is important to carefully consider these submissions before finalizing changes in this complex area of the income tax system.

Accordingly, it is proposed that the effective date for the new income tax rules affecting non-resident trusts and foreign investment entities be delayed by one year, generally to take effect for taxation years that begin after 2002. This delay will allow for full consideration, in the first part of next year, of all of the submissions that have been received, in order to finalize and implement these proposals before the end of 2002.

___________________

For further information:

If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site at http://www.fin.gc.ca/scripts/register_e.asp