CI Financial said today it will postpone asking its shareholders to vote on a proposed conversion to an income trust.

The firm said in statement that although it has essentially completed all work necessary to proceed with a conversion, it will postpone a vote on the issue until the “confusion created by recent actions and remarks by the Minister of Finance is cleared up.”

CI said it hopes that clarification will be provided no later than early 2006.

CI applied for a tax ruling with respect to certain elements of its proposed conversion immediately after the release of the long-awaited federal consultation paper on income trusts in early September.

On September 19, the Finance minister Ralph Goodale announced he had asked the Minister of National Revenue to postpone providing advance rulings respecting flow-through entities until some indefinite time after the consultation process has taken place.

Since then, no further clarification as to the timing or the nature of potential changes has been provided.

“The Minister of Finance, after suspending all tax rulings, has painted a picture of income trusts as a problem that must be addressed,” said Bill Holland, CI CEO, in a release.

“Given the negative business climate created by the federal government, we cannot today recommend to our shareholders that CI pursue an income trust structure. We would hope that the Minister of Finance lives up to his commitment to provide clarity on this issue at the beginning of 2006.”

CI believes that an income trust structure is a viable alternative for its shareholders to benefit from CI’s strong cash flow without the burden of double taxation.