CI Investments supports U.S. taxpayer clients
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.For further information: