Canada: Legislative proposal to revise trust loss restriction event rules

Canada: Legislative proposal to revise trust loss rules

Certain investment funds that are trusts may benefit from proposed legislation that would provide relief from potentially harsh tax consequences that extends the tax loss restriction rules to trusts. The Department of Finance’s proposals (released 15 January 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.

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The proposed legislation generally would implement recommendations made in a Finance comfort letter released December 2014, and would appear intended to provide that certain investments and redemptions related to these investment funds are not inadvertently caught by these rules. 


Read a January 2016 report [PDF 58 KB] prepared by the KPMG member firm in Canada: Investment Funds Welcome Fixes to Trust Loss Restriction Event Rules

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