Thank you, Mr. Chairman. I am pleased to introduce Bill 20, An Act to Amend the Income Tax Act. This bill will increase the dividend tax credit on dividends received from large corporations, effective the 2006 tax year.

Dividends paid by public corporations and large Canadian-controlled private corporations have incurred double taxation under the existing federal and NWT Income Tax Acts. The higher dividend tax credit will reduce the personal taxes individuals pay on taxable dividends.

The proposed change will parallel measures announced in the May 2006 federal budget, which were introduced in the House of Commons on October 18, 2006. The impact of the federal amendment, together with the NWT amendment, will minimize the incidence of double taxation of dividends and make the total personal income tax and corporate income tax on earnings distributed as dividends more comparable to the income tax paid on interest and distributions from income trusts or other flow-through structures.

If the Legislative Assembly agrees, the NWT dividend tax credit for eligible dividends will be integrated with the federal measures and will be set equivalent to 11.5 percent of grossed-up dividends. This change will reduce the net tax a taxpayer in the highest bracket pays on $100 of eligible dividends by $6.37. A taxpayer in the lowest tax bracket will see a tax reduction of $8.00.

A more comparable treatment of dividends, interest and flow-through disbursements will encourage organizations to base their legal structures on solid business reasons, rather than on tax considerations.

This legislation will take effect for the 2006 tax year and is dependent upon the federal legislation being enacted.

That concludes my opening remarks. I would be pleased to answer any questions Members may have. Thank you.