Investment Funds Welcome Fixes to Trust Loss | KPMG | CA

Investment Funds Welcome Fixes to Trust Loss Restriction Event Rules

Investment Funds Welcome Fixes to Trust Loss

January 29, 2016, No. 2016-05. Certain investment funds that are trusts may benefit from new proposed legislation that provides relief from potentially harsh tax consequences that extends the tax loss restriction rules to trusts. Finance’s proposals, which were released January 15, 2016, clarify the type of investment fund that may be excluded from the loss restriction events that would otherwise limit a trust’s use of certain tax attributes and other related changes. Although affected investment funds may find the proposed amendments offer relief, more clarification on certain proposals would be welcome.

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The proposed legislation generally implements recommendations made in a Finance comfort letter released December 2014 and appear intended to ensure that certain investments and redemptions related to these investment funds are not inadvertently caught by these rules. Specifically, the proposed legislation includes amendments to:

  • Refine the definition of “investment fund” to which the trust loss restriction rules apply

Download this edition of the TaxNewsFlash to learn more [PDF 58.9 KB]

Disclaimer

Information is current to January 28, 2016. The information contained in this TaxNewsFlash-Canada 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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