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.
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.
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