Pension Investment Association of Canada (PIAC) Calls for Amendments to Bill C-10 Which Will Negatively Impact Foreign Investments by Pensions Plans



    TORONTO, Dec. 13 /CNW/ - The Pension Investment Association of Canada
(PIAC) has called for amendments to Bill C-10 which is now before the Senate
Banking, Trade and Commerce Committee. Bill C-10 is intended to address
concerns relating to tax avoidance by Canadians involving the use of foreign
investment trusts by taxing these vehicles and Canadians who invest in them.
    Many pension plans invest in offshore trusts to help improve returns and
reduce risk. These investments include foreign real estate, foreign public and
private equity, and foreign bonds. This global investing is fully consistent
with the lifting of foreign content limits for pension funds and RRSPs in
2005.
    However, Canadian pension funds have no reason to avoid Canadian income
tax by using offshore trust vehicles because pension plans are already exempt
from paying income tax in Canada.
    PIAC strongly recommends that Bill C-10 be amended so that the
Non-Resident Trust (NRT) regime would not apply to registered pension funds.
There is no sound policy rationale for applying the NRT regime to registered
pension funds, and it will result in significant and unnecessary costs for
Canadian pension funds. Unnecessary costs serve to reduce funds available to
pay pensions.

    PIAC has been the national voice for Canadian pension funds since 1977.
Senior investment professionals employed by PIAC's member funds are
responsible for the oversight and management of over $910 billion in assets on
behalf of millions of Canadians. PIAC's mission is to promote sound investment
practices and good governance for the benefit of pension plan sponsors and
beneficiaries.
    To view PIAC's full submission, please visit www.piacweb.org, under
Submissions to Government.





For further information:

For further information: PIAC Contact: Peter Waite, Pension Investment
Association of Canada (PIAC), 39 River Street, Toronto, ON, M5A 3P1, Tel:
(416) 640-0264, Fax: (416) 646-9460, pwaite@piacweb.org, www.piacweb.org

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PENSION INVESTMENT ASSOCIATION OF CANADA (PIAC)

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