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The Voice of Canada’s Investment Funds Industry

Taxation

Tax policy, as it applies both to investment funds and individual investors, is an important area of IFIC comment and advice.

IFIC works with its members to develop positions on tax policy and technical issues for submission to federal and provincial governments in Canada. We serve as a resource for tax officials seeking to better understand the impact on the fund industry and investors of specific tax proposals.



Documents

2014
IFIC Letter to Finance (A. MacLean) on Amendments to Loss Restriction Event Rules in Bill C-43 (October 31, 2014)

2011
IFIC Submission to Finance Canada (Mr. Lalonde) Excluded Property - July 20, 2011

2010
Soumission au gouvernement Fédéral - Comité des finances de la CDC - Soumission sur les mesures prébudgétaire (13 août 2010)

Submission to Federal Government (Finance Canada) - Follow-up on June 2, 2010 Meeting on Status of Outstanding Issues (July 7, 2010)



GST/HST

IFIC is encouraging a government review of the GST and HST treatment of financial services.

Mutual fund holders pay four to five times more GST or HST per $100 of value-added than owners of GICs, equities, bonds and other non-fund financial vehicles.

Canada is an outlier compared to most of the more than 140 value-added tax (VAT) jurisdictions, effectively taxing rather than exempting mutual funds. Canada is also the only one of these countries applying federal and multiple provincial rates of tax, adding needless and costly complexity.

While sales tax harmonization is economically desirable in principle, sales tax legislation should be amended to levy the GST and HST on financial products and services in a way that is fairer to investors, economically neutral and administratively efficient.

2010
Submission to Federal Government (Finance Canada - Chief L. Kottachchi) - Follow-up to August 10, 2010 Joint Meeting (August 26, 2010)

Submission to Federal Government (Finance Canada - Chief L. Kottachchi) - Comments on Draft Regulations and Second HST Backgrounder (July 30, 2010)

Submission to Federal Government (Senate Standing Committee on National Finance) - Clause 55 of Bill C-9 on GST Application (July 9, 2010)

Submission to Federal Government (Ministry of Finance) - Comments on “Financial Institution Rules for the Harmonized Sales Tax (HST)” Backgrounder (June 8, 2010)

Backgrounder - Proposed Changes to the Application of the Harmonized Sales Tax to Financial Institutions


International Financial Reporting Standards (IFRS)


Prohibited Investments

2011
Submission to the House of Commons Finance Committee Re Prohibited Investment Rules under Part XI.01 - October 28, 2011