[das_hips]

But how could anybody gain from short-selling income trusts when there was absolutely no tax infraction put on income trusts, and thus no gain from short-selling, but instead the prices of these income trusts went higher.

The gain wasn't to be had in short-selling income trusts. The gain would have been in knowing that there were not going to be increased taxes on income trusts, which the market would obviously react positively to, thereby driving up the prices. Knowing this in advance of the market knowing would allow those on the inside to scoop up income trust shares on the cheap and sell once the news was released.

I'm quite aware that there wasn't any gain to be made in short-selling income trusts. The only thing that I am arguing is that it was highly speculated that there wouldn't be any increase in the taxation of income trusts because of Ralph Goodale's initial call for an inquiry in September that wasn't expected to be completed until the end of the 2005, or early 2006. When an election is looming, and the Government announces it is going to present a mini-budget, or election plaform, then I would think it is fairly apparent that the Government isn't going to implement new taxation on income trusts when this inquiry hasn't been completed.

Either way, I haven't heard progress in this story. I suspect that it will be months before they determine if there was a leak, but I'm 100% certain that they won't find anything incriminating against Ralph Goodale.