The RCMP has launched a criminal investigation into the possible leak of information relating to the taxation of dividends and income trusts.

RCMP Commissioner Guiliano Zaccardelli confirmed the investigation in a letter to NDP finance critic Judy Wasylycia-Leis. "We would like to advise you that a review of this matter has been completed. Based on the information obtained during the review, the RCMP will be commencing a criminal investigation," he wrote.

Wasylycia-Leis called on Finance Minister Ralph Goodale to step down from his cabinet position while the investigation is underway. "Mr. Goodale is personally responsible to ensure his office and his department protect average Canadians from the consequences of improper disclosures," she said in a news release.

Finance minister Ralph Goodale (CP File Photo)
Finance minister Ralph Goodale (CP File Photo)

Conservative leader Stephen Harper also called for Goodale to step down. He told reporters in Prince Rupert, B.C. that Goodale's handling of the finance portfolio has been "brutally incompetent."

Goodale rejects demands for resignation

Goodale shot back that he was not going to submit to accusations from the opposition.

"There is no personal allegation of wrongdoing against me," he said Wednesday night in Regina. "I have looked at this situation very carefully and I am absolutley confident about my conduct in this matter and I do not see any basis upon which to resign."

Late Wednesday, the RCMP issued a news release that emphasized that the force had no suspects. "The RCMP wishes to note that at this time there is no evidence of wrongdoing or illegal activity on the part of anyone associated to this investigation including the Minister of Finance Ralph Goodale," the release said.

On Nov. 23, Goodale announced just before 6 p.m. EST that the government would cut the tax on corporate dividends and would make no changes to the tax on income trusts.

There have been allegations since that time that information about the changes leaked out early, allowing some in the know to profit from the information.

Trading in many trusts and dividend-paying stocks became much heavier than usual in the hour or two before the market closed on Nov. 23 and share prices rose sharply.

For example, the share price of BCE, which pays a rich dividend, climbed 4.9 per cent on Nov. 23. The last hour featured a noticeable uptick in price and volume.

Similarly, income trusts like Aeroplan Income Fund and Yellow Pages Income Fund saw their unit prices jump 6.1 per cent and 6.6 per cent, respectively. Volume and prices turned up in late afternoon trading.

Forensic accountant Al Rosen told CBC News on Wednesday that he thinks there was a leak of information.

"I'm 90 per cent plus sure, but once again, in our business we have to be 100 per cent sure. And that is why the investigation is needed; to look at the volumes, the prices, at a whole cross-section of the trusts and the dividend paying stocks," Rosen said in an interview with CBC News Business.

Market Regulation Services, which monitors trading activity on the Toronto Stock Exchange, said it noticed unusual trading activity on Nov. 23 and was looking into it. A spokesperson at the time said the spike in trading activity didn't necessarily mean that something was amiss.