Changes to Ontario Pension Share Ownership Rules on... | KPMG | CA

Changes to Ontario Pension Share Ownership Rules on Their way

Changes to Ontario Pension Share Ownership Rules on...

Canadian Tax Adviser, December 08, 2015.The Ontario government announced that it intends to eliminate the rule which restricts Ontario pension funds from owning more than 30% of the voting shares in a corporation.

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The Ontario government announced that it intends to eliminate the rule which restricts Ontario pension funds from owning more than 30% of the voting shares in a corporation. This comes from the 2015 Ontario Economic Outlook and Fiscal Review, released on November 26, 2015. In early 2016, the Ontario government intends to post a description of a proposal for a regulation that will eliminate the "30% rule" for public consultation.

Currently, real estate, resource, and investment corporations are exempted from the 30% rule, and the government had been looking at providing further exemptions for investments in public infrastructure. 

On a related note, the 2015 Federal budget announced a public consultation on whether it too should amend the rule restricting federal pension funds from holding more than 30% of the voting shares of a company. Finance has not yet launched this consultation.

For more information, contact your KPMG adviser.

Disclaimer

Information is current to December 08, 2015. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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