TSX Symbol: CIX
TORONTO, July 3, 2014 /CNW/ - CI Investments Inc. ("CI") announced today
that starting with the 2014 tax year, it will be providing additional
tax information to assist its U.S. taxpayer clients in completing their
U.S. tax returns.
CI will issue Passive Foreign Investment Company (PFIC) Annual
Information Statements for CI mutual funds held by U.S. taxpayers,
which may allow them to achieve more favourable tax treatment of their
CI mutual fund investments.
"CI's goal is to make U.S. tax and information reporting of its funds as
straightforward and cost effective as possible for its clients who are
U.S. persons," said Derek Green, CI President.
The PFIC Annual Information Statement, which CI will supply on request,
sets out the investor's pro-rata share of a fund's ordinary earnings,
net capital gains and other distribution information in accordance with
U.S. tax legislation. This statement allows U.S. taxpayer clients to
elect to treat a CI fund held in an open account as a Qualified
Electing Fund (QEF) on their tax return.
"The QEF election is the most favourable method for a U.S. taxpayer to
report on and calculate income from owning a PFIC in a Canadian
non-registered investment account," Mr. Green said.
Under U.S. tax law, Canadian mutual fund trusts and corporations are
considered PFICs, which are subject to strict rules designed to limit
U.S. taxpayers' ability to defer tax through foreign investments. With
the QEF election, the tax treatment of Canadian mutual fund holdings
held in open accounts will be similar to that of U.S. mutual funds.
Currently, Canadian mutual funds held in registered retirement plans,
including registered retirement savings plans and registered retirement
income funds, are exempt from PFIC reporting requirements. However,
other registered plans, including registered education savings plans,
registered disability savings plans and tax-free savings accounts, are
not exempt.
CI recommends that its U.S. taxpayer clients work with their financial
advisor and a cross-border tax advisor to report their PFIC holdings
correctly.
About CI Investments - Canada's Investment Company
CI Investments is one of Canada's largest investment management
companies. It offers a wide range of investment products and services,
including an industry-leading selection of investment funds, and is on
the Web at www.ci.com. CI is a subsidiary of CI Financial Corp. (TSX: CIX), an independent,
Canadian-owned wealth management firm with approximately $129 billion
in assets as of June 30, 2014.
SOURCE CI Investments Inc.
