PFIC statements to help U.S. tax filers receive more favourable tax
TORONTO, Feb. 4, 2014 /CNW/ - CIBC Asset Management Inc. (CAM) today announced that it will make reporting information available
that will help U.S. tax filers who own Canadian mutual funds receive
more favourable U.S. tax treatment.
Under U.S. tax law, most Canadian mutual funds are now subject to U.S.
Passive Foreign Investment Company (PFIC) rules, which are aimed at
limiting the extent to which investors, classified as U.S. persons, can
defer U.S. tax through foreign investments.
CAM will provide PFIC Annual Information Statements for Renaissance
Investments family of funds, Imperial Pools and CIBC Personal Portfolio
Services in non-registered retirement savings accounts, starting with
the 2013 tax year. These statements allow investors to make the
Qualified Electing Fund (QEF) election on their U.S. tax returns. The
QEF election allows for long-term capital gains to be taxed at more
favourable rates and interest penalties can be avoided.
"We are pleased to be among the first Canadian fund providers to offer
customized statements that benefit our investors who are affected by
this U.S. tax law," said Steve Geist, President, CIBC Asset Management.
"These new PFIC statements will allow U.S. tax filers to receive the
benefits of owning mutual funds without having to worry about
potentially punitive U.S. tax consequences," said Jamie Golombek,
Managing Director of Tax and Estate Planning with CIBC Wealth Advisory
Clients should contact their advisors in order to obtain more
information and request their PFIC Annual Information Statement, if
CIBC Asset Management (CAM), the asset management subsidiary of CIBC,
provides a range of high-quality investment management services and
solutions to individual and institutional investors. CAM's offerings
include: a comprehensive platform of mutual funds, strategic managed
portfolio solutions, discretionary investment management services for
high-net-worth individuals, and portfolio management for institutional
clients. CAM is one of Canada's largest asset management firms, with
over $90 billion in assets under management as of Dec. 31, 2013.
Renaissance Investment family of funds, Imperials Pools, and CIBC
Personal Portfolio Services are not registered with the United States
Securities and Exchange Commission and they are sold in the United
States only in reliance on exemptions from registration.
Commissions, trailing commissions, management fees and expenses all may
be associated with mutual fund investments. Please read the Renaissance
Investments family of funds simplified prospectus before investing.
Mutual fund securities are not covered by the Canada Deposit Insurance
Corporation or by any other government deposit insurer, nor are they
guaranteed. The values of many mutual funds change frequently. Past
performance may not be repeated.
SOURCE: Canadian Imperial Bank of Commerce
For further information:
Media contact: Caroline Van Hasselt, Director, External Communications and Media Relations, at 416-784-6699 or e-mail: firstname.lastname@example.org.