TORONTO, March 14, 2014 /CNW/ - EdgePoint Wealth Management Inc. (EdgePoint) announced today that it will make tax reporting information available to assist investors who are classified as "U.S. persons" under U.S. tax law with their tax filing obligations.
With most Canadian mutual funds subject to the potentially punitive U.S. Passive Foreign Investment Company ("PFIC") rules, providing this type of reporting will allow impacted U.S. tax filers holding EdgePoint Portfolios, at their option, to elect to treat their EdgePoint investment as a Qualified Electing Fund ("QEF") on their U.S. tax returns. The QEF election permits taxpayers to retain the benefits of the lower tax rate on long-term capital gains and avoid interest penalties.
For the 2013 tax year and going forward, EdgePoint will provide personalized PFIC Annual Information Statements upon request prior to the April 2014 U.S. tax reporting deadline for individuals. These statements will be available for all funds and series offered by EdgePoint.
"Generating this type of tax reporting is the right thing to do for investors as without it, those impacted could be subject to a punitive tax treatment," said Patrick Farmer, CEO of EdgePoint.
Advisors can contact [email protected] to request PFIC Annual Information Statements for their clients.
PFIC rules are complex and it is recommended that affected U.S. persons consult with a tax professional.
ABOUT EDGEPOINT WEALTH MANAGEMENT
EdgePoint Wealth Management Inc. is an independent investment management firm based in Toronto, and owned and operated by investors.TM
This is not an offer to purchase. Mutual funds can only be purchased through a registered Dealer. Please read the simplified prospectus before investing. Copies are available from your financial advisor or at www.edgepointwealth.com. EdgePoint is a registered trademark of EdgePoint Investment Group Inc. Owned and operated by investors.TM is a trademark of EdgePoint Investment Group Inc.
SOURCE: EdgePoint Wealth Management Inc.
For further information: Patrick Farmer at 416.963.9353 or [email protected]