Tax Treatment of 2006 Distributions



    TORONTO, March 21 /CNW/ - In December 2006, SCITI Trust II (the "Trust")
announced that income for tax purposes was expected to exceed cash
distributions paid to unitholders as a result of net capital gains realized on
portfolio rebalancing required to ensure that the portfolio generally tracks
the composition and weighting of the Scotia Capital Income Trust Index. In
this circumstance, an Additional Distribution is automatically allocated to
unitholders at year end for the amount of the excess, pursuant to the Trust's
Declaration of Trust. The Trust can now confirm that the Additional
Distribution of capital gains for 2006 was $0.147 per unit for unitholders of
record on December 28, 2006. The Additional Distribution was not paid in cash,
rather it was paid in units which were immediately consolidated such that the
units outstanding did not change. Unitholders are required to include this
capital gain in income and this same amount should be added to the adjusted
cost base of their holdings in the Trust.

    The Trust will be issuing T3 Supplementary slips to registered
unitholders by March 31, 2007. 2006 cash distributions have been allocated as
a combination of interest income, capital gains and dividend income.

    Full details on these distributions are available on our website located
at www.scotiamanagedcompanies.com.

    %SEDAR: 00019832E




For further information:

For further information: Investor Relations, SCITI Limited, Trustee of
SCITI Trust II, (416) 945-4173, E-mail: mc_sciti2@scotiacapital.com, Web site:
www.scotiamanagedcompanies.com

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SCITI TRUST II

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